With the ban on cash withdrawals in Nigeria, Bitcoin and Cardano may finally shine

The Nigerian government is eager to steer its economy toward cryptographic payments in light of the successful rollout of the digital Naira. Cash withdrawals from government accounts will end on March 1, according to Modibbo Tukur, Chief Executive Officer of the Nigerian Financial Intelligence Unit. Tukur stated that the action is consistent with the government’s need to combat illegal activity at all levels. Cash withdrawals from government accounts will therefore be noted for investigations into money laundering.he told reporters that

“On March 1, we are going to start money laundering and corruption investigations if there is a cash withdrawal from a government account, even if it is one naira,”

The nation has been plagued by Boko Haram-style terrorist radicals, and by digitizing the economy, they hope to stop providing them with financial assistance.

It’s interesting to note that, up until earlier last month, the Central Bank of Nigeria only allowed weekly over-the-counter cash withdrawals of up to 100,000 naira ($225) for private persons and 500,000 naira ($1,124) for corporate entities. The nation also restricted ATM withdrawals to $45 per day, and as of January, cash vending machines could no longer accept bills worth $1,000 and $500. The president and the central bank can approve exceptions for excessive cash withdrawals from ATMs even with all the restrictions in place.

According to guidelines released by the Nigerian Financial Intelligence Unit or NFIU,

“imposing the limits will mitigate the danger of exposure of public officials to these crimes and prevent the financial system from continued misuse.”

Notably, less than a week after the nation’s next presidential election, Nigeria will implement a ban on cash withdrawals from government accounts.

Cardano and Bitcoin Shine Thanks to Nigeria

The popularity of Bitcoin and Cardano in Nigeria is anticipated to increase significantly in the upcoming years, despite the country’s efforts to combat corruption by banning cash. Bitcoin and Cardano have been providing hope to individuals shut out of the banking sector as millions of Nigerians suffer in utter destitution. Furthermore, neither Bitcoin nor Cardano prohibit any Nigerian from transacting with any amount of currency both domestically and abroad.

Nigeria’s adoption of Bitcoin and Cardano has grown considerably over the last few years as a result of the country’s faltering economy. According to TradingView statistics as of Friday, one dollar is currently exchanged for 449 Nigerian Naira.

The situation is worse on cryptocurrency exchanges, where Naira swaps are available for twice the going rate. For instance, one USDT can sell for about 738.75 NGNR on the Remitano cryptocurrency exchange.

At the Kano event, Blockchain innovators in Northern Nigeria show great passion for the Web3 economy.

Here are some of the highlights of the event;https://t.co/rRMGjrhr73#BFH #Cardano #Africa #Blockchain #Web3 #NFT #2022 #Crypto #event #Nigeria #EVG #CardanoADA

— Adaverse Accelerator (@Adaverse_Acc) December 12, 2022

To accelerate Web3 adoption at the individual level, the Cardano ecosystem has been collaborating closely with the Nigerian market.

Related

• Nigeria Begins Process To Legalize Cryptocurrency Use
• Nigerian central bank struggles to push the adoption of its CBDC
• GNigeria’s Central Bank says eNaira can be used to make bill payments