The recent moves of Federal Government of Nigeria by placing ban on Crypto Currency trading, through the central bank of Nigeria is not a pleasing one to Nigerian youths. Many people that has been benefiting from the transactions of crypto currencies have been condemning the moves by Federal government.
Though this is not the first time Nigerian government will ban the use of crypto currencies, despite rendering BTC and others as illegal tender, people still uses them to trade, will this year banning of crypto currencies be effective or different from previous years banning?
This move by the federal government did not just came into reality, some certain controversies surrounding the trading of cryptocurrency prompted government to restrict all financial institutions from involving in cryptocurrency trading.
Here are some of the factors that might have prompted federal government through the apex bank in Nigeria, Central Bank of Nigeria to banned it trading;
1) Financial loss
Cryptocurrency as a digital currency that used to appreciate an depreciate at a twinkle of an eye, a lots of young people in Nigeria don't keep money in bank anymore. They prefer to invest it on BTC and others, but due to the unstable value of this currency, investors can lose their money in the process and government would not be able to do anything because it doesn't have legal support.
2) Theft
As you all know, there are many criminal activities online these days, hacking is one of them, in case these exchanging apps of Cryptocurrency is being hacked, all investors money will be stolen and who do we hold responsible for that? No one.
3) Finally, due to most people not patronizing banks anymore with their money, it makes it difficult for financial institutes to operates and this will have a negative impact on them, some might fold up as soon as possible.
To avert these, government had to come with a policy that will return people to start patronizing bank of which will increase the revenue being generated annually by these banks.