Effect of CBN Ban on Cryptocurrency in Nigeria and the Solution
The African Republic of Burundi imposed a complete ban on all cryptocurrency transactions within its borders. This decision was made to protect consumer rights..
According to the government’s statement, virtual currencies are highly volatile and are traded on unregulated platforms around the world, leading to speculation that could lead users to incur losses without the right to compensation in the event of a collapse or cryptocurrency exchange..
Adding that since central authorities are not responsible for issuing cryptocurrencies, they cannot act as a legal tender, so citizens should be careful and make financial transactions only through institutions authorized by the Central Bank.
According to Alfred Njobevumusi, director of the microfinance department of the Bank of the Republic of Burundi, the reason for this decision was that some citizens turned to the authorities for help after losing money as a result of unsuccessful crypto trading. A total ban was introduced as a preventive measure.
The representative of the Central Bank also said that strict preventive measures will be taken against the violators..
At the same time, neighboring Rwanda recently announced that it is developing a national digital currency..
text: Ivan Malichenko, photo: geo-1