VERY CONCERNING NEWS: What does new BAN ON CRYPTO means for Nigerian users?

in Project HOPE2 months ago

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INTRODUCTION

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I started a day the way I pretty much always do. Some morning pushups, a cup of hot tea, and right away I would open discord to see who wrote to me while I've been asleep. And no one else, but my friend @eloghosa wrote to me quite an interesting news. One that may be the reason for concern to many Steemit users. Especially those from Nigeria:

The government over here has just announced plans to ban all accounts involved in cryptocurrency. They didn’t even give any notice. Just wake up one day and ban crypto during a bull run

Today I would like to discuss this topic and learn more from people, who are directly affected by it.

CRYPTO BANNED IN NIGERIA (?)

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I must admit, that I found it quite shocking to learn about it and I instantly googled that topic. Truth is - with the current amount of fake news available online, I found it still difficult to figure out how real is this unfortunate announcement. I wonder if mass media exaggerated this ban, hoping to get more attention to their articles. I wonder how real is this issue and how will it affect some of our Project.hope community members.

This is very concerning to read headlines like the one below:
"The Central Bank of Nigeria, today, announced a sweeping ban on cryptocurrency purchase and trading in the country."
(source: https://www.benjamindada.com/cbn-nigeria-ban-crypto/)

In this article, the author asked a very good question. One that many people out there will be asking themselves today. One that I would like to ask here, hoping that some of those affected the most (our Nigerian community members) will be able to answer:

"What CBN’s new ban on crypto means for Nigerian users and the local industry"

HOW CAN YOU BE AFFECTED?

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I've been on Steemit for a couple of years and I've met quite a number of honest and amazing users from Nigeria, whom I've learned to value and respect. Some of them are part of our Project.hope the community and many of them put so much effort to grow their accounts. Some are relying on their crypto earnings to cover part of their live expenses.

Could you, dear readers, share your thoughts about this issue? Do you fear that it will affect you one way or another? Is it only illegal to trade crypto to FIAT and another way around? Or is the fact of having an account on Steemit (with some STEEM tokens in our wallets) also a threat?

Allow me to quote one more sentence from the above article, which seems to summarize the current state of things quite well:

It is also a reminder of the high-handed nature of the current administration as regards regulatory practices - no warnings no discussions, just punitive measures.

It is hard not to have an impression, that most regulators do not seem to care about businesses and lives they are often destroying by implementing rapid and strict changes. Sometimes I wonder, why their work is not regulated. Why they seem to be above the law ...

RESTEEM AND SHARE YOUR VIEW

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I would obviously appreciate every single RESTEEM, which would help this publication get better exposure. And definitely, I would be glad to read all your valuable comments. I do read them all.

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Yours, Piotr
@project.hope founder

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You have to remember that China has put bans on crypto more than once, India had put a ban on crypto in the past and there are countless lawmakers, noted economists and central bankers that have made very convincing arguments at various periods of time regarding the banning of bitcoin and other crypto currencies.

I remember the first time China banned bitcoin, markets tumbled but bitcoin prevailed. It's certainly a lofty goal for a government to control a decentralized digital currency. In China the people just resumed trading it in other countries through vpns.

I believe it's out of their own fear and a lack of understanding regarding cryptos that this fear tactic gets thrown out into the public from time to time from different political entities.

I'm pretty sure it's wishful thinking and by now a silly narrative that seems to get thrown out to the public from political figures from time to time.

If China, Russia, India and many other leading nations have failed to ban crypto in the past, what does Nigeria have going for it that these other countries don't have enabling it to ban something no other country could?

I think it's just tough talk, wishful thinking and only strengthens crypto after the realization that it cannot be done.

Well said... after ban, CHINA today owns the most influential people in the blockchain world

I was shocked by the memo too. I mean, many countries are already accepting crypto but here, a ban is being initiated. I just hope the cops will not start coming out to stop-and-search people's phones for crypto transactions. Well, let's see how it goes.
A friend of mine once said "no one can stop revolution"

Like search your computer? They'd have to take your computer. Then it would take immense manpower to go through it efficiently. Just seems unlikely. USA had a similar issue with copyrighted material. Their solution is not a solution. It's more of a mitigation. They

  • scan your internet usage (mostly through DNS). This is easy for a country where the country controls the utilities
  • block websites through the ISP

All of these things can be overcome with VPN or tor network, but that's why it's a mitigation and not a solution

 2 months ago 

Those memos do make comment section look like a mess @r351574nc3

And it does look super spammy ...

Governments can "scare" people, but that's the only thing they can do.

The government hasn't stated categorically why this decision was made but there are numerous speculated reasons.

Top of the list is the fact that crypto was used to fund a protest late last year.

Anyway, for people like me, the main problem will be how we can turn fiat into Naira and vice versa. This directive basically cuts off the supply between nigerians and exchanges like Binance where we can use naira, through our bank accounts, to buy crypto

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It's really an amazing situation and I can't find the right words to demonstrate my approach, but the best thing I can say is that it is impressive. It seems that these governments do not care much about the well-being and pockets of their inhabitants I hope that the entire community and the population will put enough pressure to make them change their minds.Well unfortunate that a government does not take into account the income you going through cryptocurrencies, and even worse that they are sanctioned for trading or having them in their power I hope soon all Nigerian colleagues will find a solution for you quickly.

it's really an amazing situation and i can't find the right words to demonstrate my approach, but the best thing i can say is that it is impressive.

 2 months ago 

Dear @reinaldoverdu

It seems that these governments do not care much about the well-being and pockets of their inhabitants

Doesn't feel similar to living in Venezuela? :(

I'm not very familiar with authorities in Nigeria, however based on all informations I have - it seem to be one of those goverments, which doesn't really care much about their citizens and do not care about communicating with them.
At least that's my impression so far.

Have a great sunday,
Yours, Piotr

It was really a shocking news for me when I come across it and truth be told. I just see it as a mere threat as it can't really stand. Just like you say, many Nigerians depend on crypto for their daily life so I don't see it as a means at which the order will really stand.
I see the news or trend evaporating from the air very soon

it was really a shocking news for me when i come across it and truth be told.

Honestly, crypto is decentralized, so I do not understand how a central state bank can have any influence over it. I mean, so what if they ban it? They can't stop you from going to an exchange. The exchange is decentralized. There are exchanges allover everywhere. They'd have to block access to exchanges on the internet. If they do, then just use the tor network or VPN to access exchanges. Maybe I missed something here, and I need to read more. If I'm wrong, please correct me. I just feel like there's just no way you can use a central authority to ban a decentralized asset. That's like us telling aliens in another galaxy they can't smoke marijuana.

 2 months ago 

hi @r351574nc3

I do not understand how a central state bank can have any influence over it. I mean, so what if they ban it?

Imagine if your bank account would be close down and your assets in this bank would get frozen because you converted some FIAT to crypto (or the other way around). Isn't scary enough?

That's like us telling aliens in another galaxy they can't smoke marijuana.

hahahaha good one! :D

Cheers, Piotr

There's not much anyone can do if they go around freezing assets. The article doesn't say if they've started doing that or not. Obviously, being made a criminal for owning it is pretty bad, but how would they know? I pointed out earlier that it would be difficult for the police to reliably find crypto owners because in USA we went through similar with copyright. Really copyright infringement is rampant everywhere and there's not much that can be done. RIAA and MPAA have loads of money to spend. Nigerian government does not.

I see this as a true test of what decentralized currency can mean and how it will free people from oppressive governments. We'll see what happens, but I don't see the Nigerian government coming out the other side of this without some kind of white flag.

Nope actually. The government may take it too far and hand over power to the military. If you remember nigeria went in a state of anarchy last year over protesting for the disbandment of a defunct police arm of government. They ( the notorious arm of government called "SARS") go as far as stopping you and asking you to open up your mobile devices , violating your personal space in order to find something or anything they can tag as incriminating.

My only fear is, such thing might happen again and it would spell trouble for crypto-hodlers like us. Besides no bank in Nigeria currently services crypto-exchanges, so you can't possibly seek to gain profit through selling assets, neither can you find your wallet and exchanges through bank deposits. The only option now is p2p but how long would that work?

It's seems more like a display of ignorance among the people in power to me, or probably a way to get back at Nigerian youths. Why do I say so?

During the protest last year. We started a fund, pulling resources together to aid the protest and make sure protesters are fed and taken care of. The government tried to take that away from us so...we resorted to storing our asset in cryptos instead. The Central bank has no power over that and so it made them(the government) feel so powerless at that point. So saying, put 1 and 1 together and you'd see it might actually be the reason.

@r351574nc3 , @crypto.piotr

Hi @crypto.piotr, it turned out to be very interesting this post. Because there are answers from Nigerian friends that totally put us in context. I don't want to imagine if something similar were to happen in Venezuela, there are many in this country whose only income is based on cryptocurrencies.
Certainly, politicians in many countries do not care at all if the people suffer or not, as long as they fill their pockets and impose themselves, for them it seems to be something pleasant for the citizens to go hungry. I don't quite understand many things.

Nigeria is just one of the countless countries who has put a ban on cryptocurrency. Nothing serious in my opinion.

 2 months ago 

You don't see it as a concerning factor, especially knowing that you're yourself from Nigeria @joelagbo?

Interesting. I like your optimism :)

This news about this prohibition in Nigeria seems fatal to me because this country is experiencing a great economic crisis somewhat similar to that of Venezuela.

In Venezuela, regulations and prohibitions are the order of the day, so we know to a great extent how the friends of Nigeria will be affected.

But there will always be some alternatives such as international allets and VPNs to connect from your country to the outside.

The fundamental thing in this case is not to lose your cool, and start exploring alternatives so that they can continue to work on Steemit and on any of the other crypto-asset platforms that they are handling.

Hello @cryto.piotr
This announcement obviously generates concern for all, my uncertainty I think is shared by many, if what you announce is realized - how much will this decision affect Nigerians economically?
I am left with many questions like:
How much will this decision affect Nigerians economically?
What will be the alternatives for a "possible" way out of it?
Best regards.

The major implication is that it will slow down the buying and selling of crypto assets in Nigeria but cryptocurrency is not illegal yet because there is no law on it yet. We have to do peer-to-peer trading now unlike before when we can sell to exchanges directly. Thanks for your concern. Regards.

Hi thanks for your concern @crypto.piotr, I guess there's no much need to panic for new users as further regulated measure will be unvail soon.

These ban will not deter Nigerians from conducting their normal activities.
News source from Nigeria expert quote
CBN attention was drawn to how nigeria local currency are basically used for buying crypto asset which is causing major concern to nigeria government.

“They’re moving money from naira to crypto. That is what the CBN sees and has taken issue with. It is not banning crypto trading. It’s just telling financial institutions not to allow their platforms to be used to buy or sell crypto on exchanges like binance,” Olugbenga said.

One thing I know is that no matter their move, they can't stop people from making use of crypto currency in Nigeria because crypto have empowered lot of people including me. It is just an act of misplaced priority, they have lot of things they suppose to concentrate on but they won't.

The actually reason I saw was because of the endsar protest that happened last year where crypto was make use of after the government blocked the protest account.

Also the people in power never wish the masses well at all, they only want to be the one with the money thereby leaving the citizens to keep begging. No employment, No financial help, and the only source to get out of proverty, they want to ban it.

Also Adamu Garmba tweeted that we are making use of illegal means (crypto) to earn and invest in. It was really shocking seeing him tweeting crypto is an illegal means of earning. He even state that we all should start cattle rearing , we should start our own cattle investment instead of investing crypto.

Can you just imagine

It is hard not to have an impression, that most regulators do not seem to care about businesses and lives they are often destroying by implementing rapid and strict changes.

They don't really care about anyone but their pockets here. I believe the ban of crypto is a way to keep Nigerians poor, because the youths are making good living through Crypto. With time, the government fear, they won't have control over the youths. That's what I think, because there's no logical opinion I could think of. Other countries are trying to advance themselves by adding crypto to almost everything they do, like crypto ATM, Crypto payments and more.

is the fact of having an account on Steemit (with some STEEM tokens in our wallets) also a threat?

No threat to that. We can involve ourselves with crypto, but the issue is getting the monetary value i.e converting crypto to naira. I just did a normal transaction that would have taken 5 minutes, it's over 5 hours I'm yet to credited. So, that's the major worry. With time, we Nigerian youths are very clever, we would find a loop hole around the law.

Thanks for your concern @crypto.piotr

@crypto.piotr, yeah this was the news we woke up to hear yesterday.
Meanwhile, I believe it will not be implemented.
There is no need for panic, we will always find a way out of every situation.
Crypto has really minimized the rate of unemployment in Nigeria, so many person's livelihood is tied to crypto. Setting this ban is going to affect a whole lots of persons financially.
But we hope for the best.
Thanks for your concern @crypto.piotr, this shows you have the interest of your community members at heart.
Best regards

Truly dissapointing to see, this day and age, such archaic thinking, but it we drill down, i think it obeys two main things:
1.- I would suspect that bottom line, they want to a more fiscalized and overseen population where they have a tighter control on how and how much money each individual is using.
2.- bank account freezing has been a normal (but unethical of course) way to deter or destroy political competition, social leaders that seek justice (even in a peaceful way), etc. but if such accounts are decentralized it would be far more difficult.

In addition, the fact of things as there was no clear warning of this happenning for the population, and that I think, shows an untransparent policy.
Anyway, thats just my opinion.

Btw- does this mean we wont get any more scam emails from the royalty saying we have 100 million dollars in inheritance? 😂😂

Thanks for the post @crypto.piotr

 2 months ago 

Hi @davidgutre

I truly appreciate your comment.

Hopefully you will join our PH community discord one day :) I would like to get to know you closer.

Have a great monday, Piotr

Thanks @crypto.piotr !! i just joined a couple of minutes ago to the discord group! And same! I would like to hear more from you and your excellent thoughts and ideas.

Have a great week!

Really the trending information on the ban placed on cryptos in Nigeria is so obvious to the world that Nigeria has decided to go a thousand miles backwards from where it is due the incompetent and unprofessional appointments made by the incumbent government.

What actually caused this was the increase in the demand for dollar in placing trades by many Nigerian crypto traders and also the quest to many Nigerians in owniy the Bitcoin especially because of it's increasing value which the government has thought that the effect will throw the country into a hyper inflation without giving a careful thought to the negative effect the placed ban will bring to the whole economy.

But in reaction to this many notable Nigerians like the former PDP presidential contender ATIKU and so many of them has urged the government to lift the ban due to it's malignant unseen effect.

Finally it's not really a crime to own a crypto but the reverberation of freezing any cryto trader's account makes it more difficult to look up to the said invention. On the contrary since the crypto is a decentralized system it's still not possible to skunk the possession of crypto by nigerians. I strongly believe the ban will be lifted soonest because even many of the country's politicians invested into the crypto world.

 2 months ago 

Hi @davchi

Thank you for dropping by and sharing your thoughts with me. Appreciate it.

Have a great monday, Piotr

Hello @crypto.piotr the news came as a serious shock to so many of us, practically the Nigeria government wants to ensure that no account holder is having any association with cryptocurrency which is really sad.

There might be no way to recieve funds from Binance or any other cryptocurrency application into our Nigerian account any more and it is highly disturbing.

Terrible news, while in many countries are increasingly accepted there they want to ban them, I can only imagine the concern of Nigerian friends, if for Venezuelans cryptocurrencies are also a means of bringing an income home. We will have to see how these prohibitions come, if they limit the entry to the exchanges or if they will not even be able to use their steemit wallets.

Even the news of bitcoin getting ban in India is also catching up fire and no one knows what is going to happen hope for the best.

Hi dear @crypto.piotr

Some morning pushups, a cup of hot tea

I thought you were a coffee man XD, this news is worrying but the most important thing is how they are going to apply it, nobody can prohibit them from having a wallet, the problem can come in restricting access to specific websites and there if they could affect them, I don't leave to think that it is a tabloid news more than anything else.
blessing

 2 months ago 

Hi @ramsesuchiha

Coffee? Blah. i've tried few times and I never liked it.

the most important thing is how they are going to apply it

Based on my understanding, they will close bank accounts of those people who are converting crypto to FIAT (or the other way around). Apparently this is what's happening and I already know few Nigerians who cannot access (cash out) their STEEM.

Thanks for dropping by and sharing your thoughts,
Piotr

Well, this situation is very bad, how does the government know where the money comes from? I suppose they will have their means, I hope the government retracts this decision, it seems stupid to me, but that's how governments make stupid decisions

 2 months ago 

Hi @crypto.piotr
Wow. That comment would be terrible if it happened in Venezuela, many Venezuelans would have a very bad time-

I am very sorry about this terrible situation in Nigeria, I honestly do not want to be in the shoes of my Nigerian friends.

But I am sure that the popular economy will seek a way to overcome these restrictions.

I think the whole issue was exaggerated alittle by the press. I believe that no reasonable government will place a ban on something without explaining why they are taking that strict action. There is also a popular video going around that was released by the press when they interview one of the CBN official that said that the press misunderstood them on the issue. I believe that time will tell but I also strongly believe that this cannot affect crypto industry in Nigeria like the way they paint it in some publications on the internet.

In the next few days the whole issue will be clear to everyone but I still maintain my stand that CBN can not block the account of people involved in Cryptocurrency because majority of Nigeria youth are in one way or the other involved in Cryptocurrency.

 2 months ago 

Dear @great-a

Thanks for sharing your thoughts with me.

I think the whole issue was exaggerated alittle by the press.

Perhaps you're right. However, right now I already know few Nigerians that cannot access their funds.

One of them wrote to me today that he used to exchange funds at roqqu.com and it's not possible any more

I believe that no reasonable government will place a ban on something without explaining why they are taking that strict action.

I'm not very familiar with authorities in Nigeria, however based on all informations I have - I would never expect them to be "reasonable". And this seem to be one of those goverments, which doesn't really care much about their citizens and do not care about communicating with them.
At least that's my impression so far.

let's hope that indeed this issue will become clearer within next few days.

Have a great sunday,
Yours, Piotr

Yes I really hope that the whole issue will be clarified very soon.

Thanks

these are warnings to possibly prevent people from approaching the world of blockchain, but these warnings remain just words, the blockchain cannot be stopped

I hope they realize there is no controlling crypto even with bans. The best thing to do is add some regulations on top of it and try to control the seedier elements.

 2 months ago 

Indeed @numpypython

Regulations would help everyone. And wouldn't it be best for them to collect taxes from this activity, instead of pushing in into "grey zone" ?

cheers,Piotr

Exactly. Now it goes into a grey zone where people who are going to use it, are still going to use it and the state doesn't benefit from the tax revenues. Also, the country won't be able to develop their own capabilities since its illegal.

It's pathetic, I heard about the news yesterday and I was devastated. Crypto is my livelihood. I'm hoping we can have a way to work around it, but in the long-term the ban might be reduced to regulations hopefully. Because this destroys a lot of businesses

It's really so sad that the government aren't really seeing the future possibilities of cryptos in Nigeria. The youths were able to create employment themselves with the help of cryptocurrencies and now they are trying to block that means!

Well as for me, I'll keep taking part in the crypto space because it's really something I believe in and I always love whatever I believe.

We all saw the world richest man Elon Musk developing interest in cryptos and this explains it all.

Thanks for sharing this great post with love from @hardaeborla and I hope you have a great day ahead ❤️💕💓

The government here have a way of messing with the youth but whatever happens, we will survive it.

buenas noche sera que me puede ayudar

You are a scammer
You are using @swapp.app to steal people's money.

My dear steemain please stay away from this scammer.

To the attention of @steemcurator01, @steemalive, @kiwiscanfly and @crypto.piotr

My greetings to all Fellow Nigerians, it is unfortunate that a government does not think of its citizens and only see threats in the media that can provide a livelihood or some economic freedom, I hope it is something temporary or that they find strategies to continue to ensure an income through this and other platforms.

Ban or no ban, takes 1 giant EMP blast on the planet and game over for all of it, how about that volatility? No one ever talks about that topic, of course a bizillian to 1 but if gov. really wanted to take it down, they cut off the power grid.

All the big oligarch corporations have skin in the crypto space now and know how to manipulate all of these crypto markets....?? Blessings and Happy New Year @crypto.piotr! I haven't been around for ions, of course when I pop in, you are ever engaging the community and have real concerns about the prosperity of all peeps, keep it up mate!

I feel it's just one of the idea of the government of trying to show "who's in charge" . The ban can't hold. Nigerians would always lash out if it's pushed too far. This isn't the first of such feats, and it definitely wouldn't be the last. But, trust me. The ban wouldn't hold for much longer.

Thanks to you @crypto.piotr for your concern.

Obviously, the government here in Nigeria has a lot to learn about crypto. For the ban, It's most likely going to be for some time as it's just a directive from the country's apex bank to other banks in the country not to support crypto. This has led to the closure of crypto accounts and the use of peer-to-peer networks as the only means of exchanging crypto to fiat and vice-versa.

We're expecting subsequent administrations to come and do us a favor by opening the flood gates once again but till then, we'll be exploring other means of trading our crypto including the virtual world.

The nation might plunge back into recession as that was the state before crypto sort of intervened. The policymakers of course will still have their staggering salaries to earn just like the upper and the upper-middle-class who didn't find their fortune in crypto, won't be stung by the effect of banning crypto. Steemians and crypto enthusiasts will be looking for alternatives but that won't mean the effect won't be felt.

Crypto is money, crypto is an asset if anyone doesn't accept it, it's their cup of tea.

@crypto.piotr, it is actually true that the CBN on their directive on the 5th of Feb, placed a ban on cryptos; Disclosing to all financial institutions in the country to stop every transactions concerning crypto currency.

But the fact is that crypto is the future and cannot be stopped. Regulating or No regulating, Banning or No Banning will not stop us from trading and investing in crypto. This is not the first time we are hearing of crypto ban, there was a time when china, india and some other countries placed banned crypto but yet crypto prevailed. The problem is that some countries especially Nigeria has yet not understood the impact that cryptocurrency has to play in our current world

Though, i was shocked when i heard the news about the crypto ban that is trending today in my country, was shocked because how can people that call themselves Leaders be thinking like followers, this has actually opened my eyes that we have leaders that are not looking towards the future, this is a revolution and cannot be stopped!

The fact is that the ban can not stop we nigerians from trading or investing with crypto. There's no way they can stop some thing that is decentralized, No way! If other countries tried and couldn't stop then who's Nigeria to stop it!

Although its trending now but a time will come, it will fade out and cryptocurrencies will continue to grow mightily and globally. Thank you for sharing this article with us.

 2 months ago 

Thanks for dropping by and sharing your thoughts with me @bright-obias

Appreciate it.
Cheers, Piotr

Hi @crypto.piotr
As a citizen of the Middle East, I am fully aware of how intransigent and stubborn this type of governments is.
They often claim that cryptocurrencies weaken their sovereign local currencies, but in reality, the corruption that characterizes them is what weakens their economy the most.

Sometimes I wonder, why their work is not regulated. Why they seem to be above the law ...

You've nailed it.

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