Bitcoin and other cryptocurrencies have just been officially banned in Nigeria. First African country to do it? Actually, I don’t care who did it first, the last person to do it would be a more interesting statistic. A little flash back to my previous article, I predicted a fiasco between national and international regulatory bodies and cryptocurrency in the year 2021:
Regardless of what happens later, the effect of this law suit on Ripple’s progress could be a show of ‘what could be achieved’ for other regulatory bodies who have had their eyes set on cryptocurrencies and their financial activities. While Ripple face their law suit, a couple more cryptocurrency project could follow. Ripple’s law suit could usher in an era of court cases for cryptocurrency and blockchain technology. Projects are reviewing their financial activities to stay away from similar issues in the future, but with the eagle’s eye already looking, we might see more court cases in 2021.
We are barely in the second month of the year and it’s already been a long year! The market is looking explosive (either way, lol), new cryptocurrency projects are growing out of the blue; and most importantly, the law suits are flying. Everyone wants to regulate cryptocurrency; actually, ‘ban’ is the right word!
Countries and regulatory bodies throw this phrase around to describe a common restriction on cryptocurrency related activities within their jurisdiction. Following this phrase are numerous but rarely justifiable reasons why they are halting activities related to cryptocurrency. In this case, it is just to say that these things are done for the fun of it. Fact is, it is hard to see the fun here, but presumably it sounds fun…to them.
For a concept called ‘Toxic’ by regulatory bodies; cryptocurrency and blockchain technology are contributing a whole lot to countless sectors of the society. Potential use-cases pending adoption shine light on the possible ways of revolutionizing the society through decentralized versions of existing solutions.
A common practice by the regulatory bodies is to cite the role of virtual currencies (especially cryptocurrencies) in foul financial activities. While this is unarguable, it is also a fact that every form of store of value could be used in same vein. Fiat currencies remain the most abused store of value, amongst a ton of other shortcomings.
If cryptocurrency should be banned for being used in fraudulent activities, then fiat should follow same route…if we are being fair. Unfortunately, centralized systems were never structured to be fair for any reason. It is thus understandable that while the imperfect, monopolized fiat is running the world, cryptocurrencies are being banned; for fun.
Another national ban feels nostalgic. Flashbacks to the era of India and China’s cryptocurrency ban. The Nigerian cryptocurrency market is a notable one in the crypto space, Nigerians’ participation in cryptocurrency-related programs is also top notch. The ban is unarguably a setback for the growing market. ‘Two steps forwards, one step backwards’; it is hard to guess what may come next for the giant market, come what may, the revolution is here already and the boom is just getting started.