The Central Bank of Nigeria (CBN) has made a new decision to lift the ban on digital assets and cryptocurrencies. It is believed that this will bring major changes in the financial world of the country. I'm a digital transformation consultant who studies things like Bitcoin and other digital currencies.
Let's try to see how this latest decision can change ordinary people or those who invest money by giving suggestions on how to manage the world of cryptocurrencies in the next year called 2024.
First, lifting the CNB ban could increase financial inclusion in the country. This will allow millions of unbanked or limited Nigerians to use other monetary services, such as sending remittances using cryptocurrencies and small transactions. For people with limited resources, cryptocurrencies can be a powerful tool to save money and get rich.
However, the strict regulatory framework may still pose a problem for some or most people. Although the ban ended, it was replaced by stricter rules. Be prepared for regulations regarding the use of cryptocurrency services, monitoring of virtual asset service providers (VASPs), stricter Know Your Customer (KYC) checks and anti-money laundering measures. This might make trading a little more difficult, but it helps create a safer and more responsive environment.
Will there be growth potential in the VASP ecosystem?
The rules are fair and allow major VASP players to enter the Nigerian market. This increase in knowledge and resources will improve the way people do their jobs, making them safer and potentially reducing transaction costs.
However, an increase in the number of people joining can cause cryptocurrency prices to rise and fall more frequently. People should be careful and diversify their investments while maintaining a long-term perspective. Remember that cryptocurrencies are not a get-rich-quick scheme.
The Finance Act 2023 already imposes a 10% tax on money received from the sale of digital assets. When making investment decisions, people should also think about the possible taxes they might pay.
The positive aspect is the development of industrial infrastructure. The CBN's move could attract cryptocurrency-related projects and investments across the world. Get ready for improvements in blockchain, digital wallets, and payment systems that will help expand the world of financial technology.
What can we expect?
The evolution of the world of cryptocurrencies will require new skills. Tech-savvy Nigerians will have the opportunity to work in areas such as building blockchains, protecting computers from hackers and controlling cryptocurrencies.
Navigating the world of cryptocurrencies requires education and caution. Before investing money, people should learn more about blockchain technology, manage risks and identify fraud.
The CBN's willingness to accept digital currencies could help strengthen central bank digital currencies (CBDCs). This could make cryptocurrencies more real and provide Nigerians with secure, government-backed digital money.
While there are still doubts, the election of the CBN opens up great opportunities to engage more people in finance, new ideas and the growth of our economy. People who enter the world of cryptocurrencies with education, caution and a long-term vision can benefit from this new field of money.
Remember that 2024 is an important year for Nigeria's crypto journey. Take risks, learn everything you can, and use your money wisely to take advantage of this major shift in the nation's finances.
As a multi-dimensional technology integrator, Jude Ocinegbe has a proven track record of driving digital transformation across industries, including technology, healthcare, real estate, hospitality, supply chain, manufacturing, e-commerce and education.
Jude is the organizer of Cyberchain, Nigeria's most exciting and community-focused blockchain and cybersecurity conference. As a human resources development specialist, I apply a strategic approach to my work, using my experience to help organizations achieve their goals.
With extensive experience as an ICT consultant in the public and private sectors, Jude has earned a reputation as an advocate for cybersecurity and blockchain. He is also currently the founder/organizer of Cyberchain and managing partner of Zinochrome.