Months after the Reserve Bank of Nigeria (CBN) launched a letter prohibiting regulated organizations from handling bitcoin in February, there has actually been a 27%boost in peer-to-peer (P2P) bitcoin trading in the nation, according to information from analytics platform UsefulTulips
The restriction came as a follow-up to a previous CBN circular of 2017 that warned organizations and the general public on the danger connected with deals in cryptocurrency. With the February 2021 letter, the CBN clarified to regulated organizations that “handling cryptocurrencies or assisting in payments for cryptocurrency exchanges is restricted.”
Nevertheless, the CBN did not limit bitcoin usage by people, as reported by regional media outlet Today NG. That subtle distinction, coupled with Bitcoin’s decentralized and uncensorable nature, has actually permitted Nigerians to work around the restriction on exchanges and turn to pure P2P services like Paxful and LocalBitcoins
Being a decentralized, P2P electronic money system, Bitcoin can’t be quickly bent by the guidelines of authoritarian federal governments. Nigerians have actually shown that prohibiting banks and exchanges from taking part in Bitcoin does not weaken the network however enhances it.
” Prohibiting bitcoin is a fool’s errand. Some will attempt; all will stop working. And the really tries to prohibit Bitcoin will accelerate its adoption and expansion. It will be the hundred mile-per-hour wind that fuels the wildfire. It will likewise make Bitcoin more powerful and more trustworthy, more vaccinating it from attack and strengthening its antifragile nature.”