Nigeria’s Central Bank Lifts Crypto Ban as Yellow Card Anticipates Boom

Impact of CBN Guidelines on Nigerian Crypto Space

The Central Bank of Nigeria’s (CBN) recent guidelines, which lifted the ban on crypto transactions, present a chance for greater legitimacy and integration of the crypto space with the traditional financial system. This could expand the user base of the Nigerian crypto exchange Yellow Card.

Lasbery Oludimu, the chief data protection officer and vice president of legal, commercial and product at Yellow Card, told Cointelegraph that the peer-to-peer market, which was dominant during the ban, will shift with increased banking support. This could lead to more competition and innovation in the Nigerian crypto space.

Oludimu predicted that cryptocurrency usage in Nigeria will surge in 2024 due to the CBN’s regulations, which will ensure and facilitate a more structured and regulated environment for crypto transactions. She added that the reentry of banks will bring more competition and improved transaction efficiency, which is beneficial for the crypto ecosystem. The Yellow Card executive believes the CBN’s guidelines will encourage cooperation between traditional finance and digital assets, allowing for better integration and collaboration.

CBN Guidelines for Digital Assets

The Central Bank of Nigeria (CBN) released a set of guidelines for digital assets on December 22, 2020, allowing virtual assets service providers, such as cryptocurrency and crypto assets organisations, to open accounts with Nigerian banks. This was two years after the central bank had previously prohibited banks and other financial institutions from operating accounts for cryptocurrency service providers.

Highlighting the positive impact of the CBN guidelines, Oludimu stated that the new policy creates a regulated environment, boosting confidence and trust in the Nigerian crypto sector. Yellow Card expects increased user adoption and engagement due to the clarity provided by the regulatory framework, attracting more individuals and companies to the crypto space in the coming months.

In line with the newly established regulations, Yellow Card plans to seek strategic partnerships, grow its user base, and contribute to advancing Nigeria’s digital assets ecosystem by introducing innovative solutions.

The differences between web 1.0, 2.0 and 3.0, as well as the impact that web 3.0 will have on business, are important factors to consider when assessing the future of digital assets.