Why is it possible that Nigeria will not embrace Bitcoin as legal tender?



 The Central African Republic became the first African country to accept Bitcoin as legal money in April 2022.

The country's parliament declared Bitcoin and other types of cryptocurrency to be legal cash, making it the world's second country to do so.

El Salvador became the world's first country to legalize bitcoin as a means of payment in September 2021, allowing customers to use cryptocurrencies in all purchases. Since its inception in 2009, when it ushered in a surge of new cryptocurrencies, BTC has attracted both positive and negative attention from around the world.

Despite this, its use has continued to rise, either legally or illegally, compelling global firms to consider it as a form of payment. Emirates has recently been in the news.

According to a World Economic Forum estimate, there are 18,142 cryptocurrencies, 460 crypto-exchanges, and a market capitalization of $1.7 trillion. Every 24 hours, it claims, $91 billion in cryptos were traded.

Cryptocurrency is prohibited in Nigeria due to a ban imposed by the Central Bank of Nigeria in February 2021. Nigerians, on the other hand, have continued to use it in their transactions.

The crypto market in Nigeria and other African countries expanded by 1200 percent in a year, according to a Chainalysis analysis from 2021. It added that Africa had the third-fastest growing crypto economy in the world.

Experts, on the other hand, say that countries should proceed with caution when it comes to adopting Bitcoin and other types of cryptocurrency as legal cash. They said that BTC was never intended to be used as a legal tender.

According to them, Nigeria may consider Bitcoin as a mode of payment in the future, but it will never be able to replace the Naira. They went on to say that using it as a Naira would be against the CBN's constitutional mandate.

They went on to say that countries that had embraced or were considering accepting cryptocurrency as a method of payment were on the verge of economic catastrophe, and Nigeria wasn't necessarily one of them.

This will be contradictory to the fundamental provision of Nigeria's laws," stated Chimezie Chuta, the Founder and Coordinator of the Blockchain Nigeria User Group. Because, as stated expressly,The CBN is the only organization in the country with the authority to issue legal money.

And since the Naira has been issued, any other unregulated currency that wishes to become a legal tender must be legitimized by changing the constitution." That is something I have not seen in Nigeria in a long time.

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