The recent ban of cryptocurrency exchange and subsequent order for closure of bank account associated with cryptocurrency in Nigeria by CBN may take Nigeria Government back to grapple with the realities of virtual money firm grip on the world economies.

The United States and other developed nations have come to terms with cryptocurrencies and develop innovative strategies to fit into a regulator framework and profit from the daily multibillion-dollar exchange in the virtual market. All previous attempts to stop the currency have eluded all kinds of government. Leading universities like Stanford, MIT, Columbia, Cornell, Oxford, and Cambridge universities have research centers on blockchain technology.

If we want to be objective, cryptocurrencies have provided thousands of jobs for Nigerians as monthly exchange near $200 million over the Nigeria Stock Exchange of $131 million in the second quarter of 2020. While trade is cryptocurrency is highly volatile, those that engage in the exchange have mostly had good stories to tell. One thing is sure – Cryptocurrency is not a fraud!

The risk the new CBN policy imposes on the economy, in my opinion, far outweigh the transactional risk CBN cited in banning cryptocurrency. Does one wonder if there is an unspoken ulterior motive that necessitated the ban?

The major losers in the dynamics here are the Nigerian banks denied deposits to channel to develop our healing economy through loans. It may be necessary to assess if a regulator, like CBN, has absolute power to bring businesses down by a stroke of a pen. The Nigerian constitution guarantees every Nigerian freedom to do business and own property. CBN actions can be challenged in the law court by civil rights lawyers and the Nigerians bank if CBN is found to overstretch its power beyond the constitution's ambit.

The ban takes away investor's confidence in the Nigerian market. Many budding Nigerian investors creating a platform for virtual currency exchange are suddenly forced to close the door. The foreign investor would be more afraid to invest in the Nigerian market when we are canvassing for investment.

The right thing to do is to strengthen the regulation of the cryptocurrency market in Nigeria. CBN can mandate extra data collection for cryptocurrency deposit holders. Like other developed nations, the Nigerian government can tax cryptocurrencies' sales and increase the country's revenue.

If CBN does not act fast to reverse the obnoxious policy, the tide may turn against them – there are ways to exchange virtual currencies by bypassing Nigerian banks. It will be too quick for Nigerians to join the bandwagon that cut off domestic banks.

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