Nigerian analysts deny claims of crypto role in Bureau de Change(BDC) shutdown!

The Nigerian cryptocurrency peer-to-peer (P2P) market is now closed. That is why one expert claims that the Nigerian authorities are not responsible as well as the Bureau de Change (BDC) behind this P2P shutdown. Because the Nigerian Web3 legal representative. They are claiming the absence of US dollars as the reason for stopping such transactions. And due to the absence of these US dollars, the BDC operators have announced closure of operations in Abuja. The absence of the US dollar is blamed on such P2P transactions and they claim that such transactions have led to the US dollar crisis.

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Paul, a Nigerian crypto expert, clarified that the allegations are baseless. He also said that cryptocurrency plays a small role in Nigeria's forex activities. Moreover we know this country is a crypto friendly country. Moreover, the country has always been very tolerant of crypto. He therefore noted that more significant factors such as price fluctuations and the country's dependence on imports contribute to foreign exchange shortages. It is true that US dollar shortages are usually created based on price fluctuations and imports.

Nigeria is a crypto friendly country and is currently the largest P2P market in the world. Although at one time all these digital currencies were banned in the country. In particular, the central bank of the country banned the purchase and sale of these digital currencies. However, this ban was lifted by the end of 2023. A circular sent to banks therefore lifts the crypto ban on Nigerian banks to facilitate cryptocurrency transactions. Current fees for foreign currency transfers are significantly higher within the banking system than in the crypto market, making P2P transfers more attractive. Moreover, many Nigerians nowadays are involved with these digital currencies and transact through them. Especially many Nigerians deal with foreigners and transact through banking.

Such digital currency transactions make it convenient to control inflation and access foreign exchange and hedge their Nigerian Naira against inflation. So this kind of digital currency transaction is very important for the country. That is why the government must regulate both the sectors. In particular, the country's government should keep an eye on both BDC and crypto. And the country's authorities must also look at how BDCs can use technology to improve their transactions. Cryptocurrencies need to be properly regulated. But for that one must first understand them well and know how they work to control it efficiently.