Bitcoin ‘Can’t Be Stopped; Some Nigerians plan to continue trading bitcoin (BTC) and other cryptocurrencies despite a directive issued by the Central Bank of Nigeria (CBN) recently ordering banks to close down accounts.
“There’s no stopping crypto, [it’s] the future and we won’t let some old fools take our future from us,” one Nigerian bitcoin user who wished to remain anonymous told Afriupdate News. “We’re Nigerians. Using the crypto is a way out of poverty for the youth.”
Recall that the Central Bank of Nigeria (CBN) ordered banks to close down accounts associated with cryptocurrencies. But this will not be enough to shut down Nigeria’s cryptocurrency market.
CBN clarified on Sunday that this is not a new order, but a reminder of a directive published in 2017. However, whether old or new, it’s having an impact. In response, banks quickly cut ties with cryptocurrency companies, such as the Binance exchange and social payments app Bundle, which in turn stopped accepting deposits.
Nigeria has become a hot spot for cryptocurrency as an alternative to the naira, a national currency prone to depreciation. Nigerians have found various use cases for decentralized digital currencies, from trading bitcoin to make a living to using it to dodge trade restrictions with China.
Afriupdate learnt that during protests against police brutality (#EndSARS) in the country last October the Feminist Coalition was one activist non-profit accepting donations going toward the protests. When the group’s bank accounts were frozen and it couldn’t accept funds, it switched to bitcoin donations because the payment method could not be frozen.
While there has been a lot of unrest over the past few days as Nigerians were no longer able to use their local bank accounts to fund their cryptocurrency wallets, the truth is that buying cryptocurrency despite the new CBN restriction is actually a lot easier than a lot of people think.
The new regulation by the Central Bank of Nigeria which restricts direct use of local bank account to fund cryptocurrency wallets affected exchangers like, Roqqu, Bundle, Luno, Binance, etc., as Nigerians could no longer fund their wallets through their platforms. But it has not stopped Nigerians from trading cryptocurrency and it shouldn’t stop you either.
Thanks to its decentralized method of operation, cryptocurrencies can conveniently stay beyond the reach of any government body, so you don’t need to be afraid.
Here are a few suggestions on how you can conveniently bypass this policy without being flagged, or having your account restricted:
Peer-To-Peer (P2P) Transactions
One of the options we have is a peer to peer (P2P) purchases. Basically, this means buying and selling between two individuals without a third-party’s involvement. But to do peer to peer trades, you need to know someone who is willing to sell or buy depending on what you wish to do with your coin or naira. There are a few trusted platforms that act as escrow: Remitano and Binance However, it is important to avoid the use of any crypto-related payment reference to avoid being flagged.
Cross-border Payment Apps
With cross-border payment/transfer apps, crypto users can deposit money (in those apps) and fund their crypto wallets via mobile money, to facilitate their trade and send their monies home. Although most apps can claim deposits, it is also important to be sure you can make withdrawals. The best apps for this method are Bitsika, FxKudi, and Cofredpay depending on your preference.
READ ALSO: Crypto Trading, Types And Terms Explained For Beginners
Forex Brokerage Accounts
Forex accounts are not only for trading, they can also be used to keep your money in dollars. Many forex brokers also allow you to fund your account and withdraw in Bitcoin. So all you need to do is open an account with a forex broker, and fund it with the amount you desire to deposit, then request for your withdrawal in cryptocurrency. You can also fund your account with cryptocurrency, and withdraw from the brokerage to your local bank account. It’s really that simple!
Binance has also launched a trading method that allows Nigerians to trade on their platform using the NGN Fiat/NGN pair with zero fees. So you can simply make your deposit by buying the Naira on the platform and using it to buy your crypto.
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