Experts and crypto enthusiasts have lamented the current ban on Binance naira operations in Nigeria, stating it may increase youth unemployment in the country.

In separate interviews with The PUNCH, the experts called on the government to look for better means of managing the country’s current foreign exchange challenges.

An economist with Lotus Beta Analytics, Shedrach Israel, said that the recent move by the government was tantamount to “treating malaria with paracetamol”.

He claimed the ban on Binance would not address the falling value of the naira.

“I don’t know why the cryptocurrency is being seen as sabotage on the exchange rate because the cryptocurrency is not the major means by which the dollar is flowing in Nigeria. Banning Binance is like giving a malaria patient paracetamol. Although paracetamol may cure the pain of malaria, it does not cure the sickness.

“Similarly, banning Binance has not stopped the naira from falling because the issue is bigger. Binance is just a bit of how much liquidity the dollar has in Nigeria,” he argued.

Israel has called on the CBN to investigate the forex holdings of top Nigerian politicians.

“These people, whether politicians or private citizens, who have stored up forex should be made to convert their money to naira, otherwise, the ban would not be effective.

“Although the CBN governor claimed about $26bn had left Nigeria through Binance unaccounted, the fact is that Binance uses peer-to-peer trade, which means that there is inflow and outflow of naira in the economy. If $26bn has gone out, how much has come in? Binance is not our problem. Some Bureau de Change operators are possibly richer than Binance users,” he added.

According to the National Bureau of Statistics unemployment data, the unemployment rate among youth aged (15-24 years) in Q2 2023 was 7.2 per cent, compared to 6.9 per cent in Q1 2023.

It is estimated that over 22 million people, or 10.3 per cent of Nigeria’s total population, currently own digital currency.

In September 2023, the Securities and Exchange Commission of Nigeria issued a definitive statement, explicitly clarifying that Binance Nigeria was neither registered nor regulated by the SEC.

This official declaration categorises the operations of the renowned global cryptocurrency exchange, within Nigeria as illegal and unauthorised.

In December 2023, the apex bank changed its stance on crypto assets in the country and asked banks to disregard its earlier ban on crypto transactions.

A cryptocurrency trader, John Odiba, however, stated that the effect of Binance’s exit from Nigeria could be both negative and positive, with the positive outweighing the negative in the long run.

“The effect of Binance’s exit on Nigerian users can be both positive and negative. One of them is that it could lead to decreased liquidity in the Nigerian cryptocurrency market, resulting in higher transaction costs and less favourable trading conditions for users. Nigerian users may face some limitations in accessing certain cryptocurrencies and trading pairs that were previously available on Binance, potentially hindering their investment opportunities,” he said.

On the positive side, he said the absence of Binance could create space for local cryptocurrencies like the eNaira to thrive.

“The absence of Binance could create space for local cryptocurrency exchanges to thrive, offering Nigerian users more options tailored to their needs, in the long run,” he said.

According to a crypto enthusiast, Godwin Ojonugwa, his main source of income is the Binance peer-to-peer trade.

He claimed that he was able to fund his education and built himself a befitting apartment through the trade.

He lamented that the current restrictions had negatively impacted his business and he was scared of becoming unemployed.

“Binance has made me a millionaire. I went to school and built my first house with Binance trade. Banning it has made business difficult and I am afraid of becoming unemployed,” he enunciated.

Source: https://punchng.com/binance-exit-may-worsen-youth-unemployment-says-cryto-traders/

Had a conversation with a friend while he kept talking about the binance and the crypto system, I asked him what is the benefit of binance to the real economy?

How does binance improve a nation?
What is the essence of cryptocurrencies?
How does binance create real investable businesses?

I think this is an avenue for the NGX and FG to enlighten the youths on shares and stock trading. it basically is not too different from the Crypto system, but this time you are investing in real companies. There was a very massive boom in the stock exchange for those that traded last year, bonds are doing great aswell till today with good yields..

On a last note, the NGX should create "NGXmini" for new registered businesses that are seeking funding, ordinary people can try their luck on funding new businesses and ideas and not just leaving it to the cult of "Angel investors".. there is a reason why Nigerians fall for investment scams, its because there is a gap in the structure.

This is how economies are grown..

APC is a disaster

All dis could've been Avoided is not for the looting over the years. Did is a topical example of looting the future of youths happening before your eyes

Binance and its supporters dey mad. As the volatility in the forex market don calm now small now una no like am?

I still don’t know why they banned binance Naira operation because there are 100’s of other platform to replace them. They are just a platform and not the owners of the crypto market. Anybody doing dirty deal in binance will move to another platform. They should have drafted a regulatory framework instead.

Binance must remain banned.

Those who just want to complain without intent to do something but to just blame the government are not serious

Okoroawusa:
Binance and its supporters dey mad. As the volatility in the forex market don calm now small now una no like am?

They are enemies of Nigeria

This is an opportunity for home grown solution.

Pessimistic, Boys are still trading with better alternatives.

Hi

Binance and crypto currency are mainly use by fraudsters.
When ex Buhari banned crypto in Nigeria,his attorney general,malami,was still trading with the ecurrency.I believed that is where he hides his illicit wealth that cannot be trace.
Binance is own by a Chinese and I don't think China is trading with the platform.Some EU have ban and placed a heavy fine on binance.Which of the youth with genuine source of income will trade on this ecurrency if not Yahoo fraudsters?

The foolish people binance are the reason why dollar is at 1,500 today. You will see them all over the internet speculating #3000 to #5000 for dollar to naira, while doing everything possible to push the speculations into reality. They were almost achieving their aims until God hear the cry of the people and stop them. They will never use those gain monies to acquire any good thing in Jesus name.