₦airaland Forum

Now to those who are saying crypt0 transactions are fraudulent.
In normal human nature, people castigate what they don't understand


Let me ask.. can anyone explain how exactly they are fraudulent? Everyone keeps saying that but no one can explain how it is.

To look at what this memo would do.

Will it prevent folks from transacting via crypt0. Nope.
Folks will just switch to p2p which has been in existence for ages and on which CBN can do nothing.
I'd give you proof. After the news broke, binance which was seems to be the largest exchange nigerians use experience a heavy selloff of stable coins into the naira making the naira rise. Also, deposits of naira were halted. The naira exchanged at a low of about 433 to the dollar. I said here that it's only temporary. Less than 24hours later, it's shot bach up to 466 and that is with deposits still limited...

Nigeria's crypt0 trades have overwhelmingly been p2p based which CBN can do little or nothing about. ( https://news.bitcoin.com/nigeria-is-worlds-second-biggest-p2p-bitcoin-market-trades-top-566-million-in-five-years/ )
It's of recent that it's now becoming more exchange based. Folks have already switched back to p2p without hassles.

In no way does this affect any criminal wanting to remit funds via crypt0. They will still do it and do ot easily if they wanted to. Afterall, they mainly used traditional means. What this just does is make it a bit more difficult for the average Nigerian to trade crypt0.

China has better infrastructure in banning stuff. But even with tge ban on bitc0in there, 70% of bitc0in is mined in China. They still have one of the largest trading volumes after the U.S

If the west are so concerned about crypt0, why haven't they banned it already?

In summary, this regulation does not achieve anything it was setout to. CBN rather than use the opportunity to regulate a sector failed in this.
This will be more obvious in the coming days.

Like I said, can someone explain how exactly this will lead to less fraud in Nigeria?

emmanuelewumi:
Please read today's Thisday newspaper

It'd be interesting if CBN acted based on this.
Before the advent of crypt0, have Yahoo boys been defrauding? Yes they have. Even if all Nigerians stop using crypt0, in will in no way affect fraudulent transactions.

There has always been an apprehension in the West on foriegn remittance to Nigeria. I remember the Irish house arguing on it in a video that circulated on NL. It was one of the members there that put down the discussion as racist. Nigerians travel abroad in their millions to work and would definitely remit money back home. If they suspect fraudulent cases, they should investigate it.

So from this article, we can see that inflow to Nigeria was more than outflow. That puts to rest the issue of crypt0 devaluing the naira.

Secondly, let me explain what happened.
We know CBN relies heavily on foriegn remittance.
Previously, remitances were transacted based on the official exchange rate.
Of recnt, remitance companies now offer close to market rates which is sensible. Seems most were able to achieve this by sending the money via crypt0. Folks obviously would rather use remittance companies offering market rates than those not.

This further led to a massive drop in official dollar remitances and obviously an increase in crypt0. CBN seeing this trend, decided to force banks to give remitances in cash or in their base currency to recipients so they can exchange at market rates. I'm guessing their hope is to flood the market with dollars and bring down exchange.

So in summary, the increase in remitance via crypt0 did not come from no where. Foriegn remittance to Nigeria dropped from 20bil dollars to 6 bill dollars in a year. Same money is still coming back just via the open market

emmanuelewumi:
Is it possible for FG to have a sovereign crypt0 currency in Nigeria.

I'd address the 2 points you raised to avoid misinformation.

It's possible, China, EU and recently India have been looking into it. It's tricky cos its new and alot of regulatory framework would be involved.
China for one has been trying to unsit the dollar and I believe their inclination is that this may help them achieve that. When one looks into how crypt0 works, it's difficult to argue against money being transacted in a similar in future. For now, it's not clear how.

The advantage of this for the central banks is that they can more easily 'mint' unlimited fiat. Also, this can be more efficiently distributed from a central source to citizens wallets. We saw what happened with Covid.

Some people think bitc0in will replace fiat. That's wrong. It's not a replacement for fiat or the banking system. They will both run together. There are reasons for this.

That said, there have been advent of crypt0 coins which already act as fiat just that they are not Central bank backed. They are called stable c0yns because they are not volatile as other crypt0 assets. They are issued by private firms. Each unit is equivalent to its underlying currency and ideally backed by a unit of that currency or it's equivalent in cold storage.

When they came out initially, people were skeptical but they have gone on to revolutionalise the crypt0 space and one of the readons for the current run. Most folks now trade other crypt0 assets into them and obviously they can be transferred worldwide in minutes just by having the recipients wallet address. For example, if I want to send you 10,000 usd, all I need is a wallet address and that sum will be in your wallet in minutes. You can then decide to convert it to fiat on an exchange. Obviously, they have become more popular in countries whose currency has been devalued e.g Brazil as folks usr thrm to hedge against devaluation even if they are not interested in trading crypt0. It's the stable coins that have piqued the interest of central banks in issuing their own crypt0 assets.

Examples of stable coins are
USDT, USDC, BUSD, TUSD PAX, DAI - dollar based
TGBP- Pounds
EURS, EURB- Euro.

In summary, even if the CBN isdues its crypt0 coin, it'd be backed on the Naira. So the devaluation of the naira will also affect it too and that will not fix our economy

.

TotoNaRubber:
The point is, FG banned banks from allowing Nigerian bank accs to trade crypt0, Nigerian Bank accs are denominated in Naira. Sourcing Naira with Dollar is easy but sourcing dollar with Naira is not easy.
FG is right on this one.

Most of the money Nigerians use in trading has to remain in Nigeria if not, you wouldn't have an effective exchange.
People buy and sell by the minute... That's the area you don't see. It's obvious you don't understand how it works

Like I said, they've been absolutely right on previous decisions. Let's see how this will age

pluto09:
Binance is relatively new,but it should be the biggest now.
We have too much money in circulation with people not willing to invest in real economy.
Who can blame them?
I can not also blame CBN for this directive though I am somehow affected..
The CBN has to do its job part of which is to control the money in circulation.
I don't envy the CBN governor, we as a country are in a very delicate and difficult situation.

CBN should have handled stuff better. The solution to everything is not a ban. Moreso when countries with better regulatory infrastructure had failed at it.

The naira needs to be stable to encourage folks to invest. This move will not help stabilize the naira in any way

Countries that have laws that regulate their trading and host exchanges don't have two heads.
I wouldn't be surprised if folks like the Bundle CEO moves base to Ghana and operate from there. Later, someone will mention 'richest Nigerians' which are basically folks who rip the population off.
They should regularise the exchange rate and all these problems will fizzle out
Nigeria is sliding into poverty and people need to speak-up to the government when they make terrible decisions.

TotoNaRubber:
Remittances doesn't go to the FG when crypt0 is sent by anyone, exchange sites uses their channels to pay account holders in Naira, FG benefits nothing from it so it's one of the reasons of stopping it.


FG didn't ban crypt0, it banned the use of Naira to buy crypt0 which is the right thing.
Nigerian economy is down, why pull it down more.

You have no idea how the sector or even forex works. Crypt0 if not the reason our economy is moribund and does not contribute to it being in that state.
Correction.....FG did not ban using the naira to trade crypt0. That cannot be done. What they did was prohibit banks from allowing exchanges and individuals to use their channels for it.

let me ask
Where does a crypt0 exchange get the money to pay those withdrawing? What is this channel you are referring to or does the exchange manufacture naira from thin air?
Also, are you saying that FG does not benefit from forex to roundtrip and enrich themselves or distribute for pilgrimage?
You sound so much like those who supported every wrong decision this government has made...too many too list.

pluto09:
Betc against ngn close to 7b
Usdt against ngn more than 3b
We still have other coins that I have not added and this is only for one exchange.

I haven't taken note of that sef... That's huge moreso considering there was reduced buying over the last 24hrs.

Funny enough, Binance is relatively new... adding others like Luno, Bundle, Quidax, Patricia plus p2p (which seems to be the largest), it could easily hit 40-50 bill daily. That's volume!

afroxyz:
Obviously he is an arm chair theorist. Knows nothing about crypt0. Imagine saying it favours developed countries. Who even converts naira to dollars to buy crypto?

He is likely seeing things from just one angle and does not understand that it goes both ways. If anything, the total inward flow is more than the total outward flow

The number one factor causing the continued devaluation of the naira is the multiple exchange rates we have. Connected folks in collusion with CBN staff sit in their house and manufacture hundreds of millions daily just by making phone calls. How will the currency not continue to be in freefall?

Even a beetle will know better. Everybody sensible has spoken against it just like fuel subsidy yet they keep doing it and wonder why Nigerians are suffering. The worst thing part is that folks have always come to defend every wrong decision this administration has made. Let them continue, the population of our nation is growing too.. After some time, we'd see the effect

pluto09:
I have the snapshots for today.
More than 10billion naira traded.

Wow!!
Can you share screenshots?

Nigeria has a larger p2p industry and it seems a good paet of their trade is with China... I'm getting some info bit not so clear on it... Any details on it?

TotoNaRubber:
Nigerians pump Naira to the Crypt0 exchange sites and the exchange sites convert the same Naira to forex at the Nigerian exchange market pushing pressure on the value of Naira. The exchange sites could be pulling as much as $2 million per week or more as I know Nigerians can overdo, this is one of the things the CBN has been fighting.

Crypt0s favour the developed countries and a few Nigerians, when the dump comes, Nigerians are among the last to act and on the long run Nigerian economy will suffer it, it is best to put a stop to it now. Anyone in diaspora has at least one legal way to send money to Nigeria.

Let me ask

1. As it's a market in constant flow, what happens when they withdraw?

2. What happens to foreign remittance via crypt0? How does that happen?

pluto09:
I follow binance daily and one of the things I watch for is volume.
Unfortunately I did not have a snapshot.

That's huge then... Only a matter of time before CBN noticed...

Sensible thing would have been to provide a regulatory framework

emmanuelewumi:
It is abnormal to commit funds into any Investment, asset, venture or business you know nothing about.

It is pure speculation and gambling.

Better to keep such funds in the bank

I did justice to this in my previous post.
Knowledge is relative

For those mentioning China, hope you know that 70% of bitc0in is mined in China

mrfreestuff:
And prior to the CBN circular,Nigeria was No. 2 in the world in P2P Bitcoin volume . By that time, the economic sabotage of Nigeria by the sheer volume in this crypto has forced us to devalue our local currency naira twice in 1 year as they mopped up naira to buy USD and then exported them out of the country to a foreign country. Our inflation had increased astronomically too especially on imported goods and services because importers pay more to get USD as they got crowded out by crypto merchants.

Other import dependent countries should learn from our bad and horrible experience with these crypto instruments. They should regulate it and insist that only USD inflows must be used for trading them so they will not kill their local economy and currency.

You have no idea what p2p means...
90% of money traded on p2p is still local.
I'd even say that more money has come into Nigeria via crypt0 than has left

Springboot:
Yes because it will have more negative effect on their economy than the large ones, meanwhile bitcoin is illegal in the UK so stop the ignorance.

Which UK are you talking of?

There's a clear government guidance on crypt0 tax in the uk available on the government's website. The government will not be asking you to pay tax on something illegal.

Some licensed UK banks allow customers to buy crypt0 assets on their app. E.g Revolut...

So I ask again, which UK are you talking about?

pluto09:
That is really one of the major concerns.
The kind of money going into crypto exchanges daily from Nigeria is just too much.

I edited my post...
I meant your source.

Fact is huge money has gone into the sector..
I'd say it's been fuelled by 3 things.
1. The devaluation of the naira of which CBN played the major role

2. The fact that bitc0in broke it's previous 20k all time high in 3 years. Most folks wjo thought it was dead started paying attention and considering it as a long-term option

3. Those who want quick cash who would further fuel the run and likely be burnt because of greed. Perhaps the 'gamblers'

emmanuelewumi:
What will you call anyone who commits money into businesses, ventures and Investments they don't have knowledge of

I call them the average human. That's how 95% of the human population (including we here) behave

Knowledge is not an on or off state... No one knows all and no one knows nothing. Knowledge is just one part, experience is another.

I am very knowledgeable in some areas and blank in others. For what I don't know, I seek knowledge or seek help

pluto09:
The value of crypt0 traded against the ngn has increased significantly in recent months.
More than 20billion yesterday on binance.
CBN should definitely be worried.

Can you share your source?

emmanuelewumi:
If you commit funds without understanding the fundamentals, earnings growth, price earning ratios, profit margin, revenue and other efficiency ratios you are a gambler. Better to buy a mutual fund or a money market fund

Fact is over 80% of evrryday Joe do not know all those details. They just want to buy a 'good' stock or that of a company they believe in and let in grow and perhaps pull from it later on. Like it or not, that everyday Joe and his confidence in a market that help determine the markets performance?

Since the NSE crash of 07/08 when the general public lost confidence, stockbrokers and 'knowlegeable' have still been trading and making profit. How has the market fared under them?
Where I stay, most folks hire an accountant to help advise them on where to invest for old age.

I have an indepth knowledge of items I invest in but I am belong to a very very small minority and wouldn't call those who are not as knowledgeable as me gamblers.

Esseite:
Yes... now that difference in FX has its advantage and disadvantage..

Manufacturers buy from CBN, raw material dealers buy from CBN, if you and I whom are prone to foreign items buy at CBN rates aswell, we would be killing off our manufacturing industry. It was design to curb unnecessary demand for forex.

The disadvantage is that same CBN sells to some individuals cloned as manufacturers which in turn sell at market rate.

I don't see any advantage this has brought to Nigeria.

There has been no country in the world that such policies have helped.

I don't blame myself for the ineptitude of CBN. There are ways to encourage manufacturing. Countries are doing it daily. Having an unstable currency is the easiest way to kill manufacturing.

When the president spent forex from the public purse treating himself abroad, we didn't bother about the effect on the naira.

The dual exchange rate is the number one reason responsible for the devaluation of the naira and will continue to be that way except it's stopped.

Esseite:
Atiku is just chasing clout... CBN took the best decision.

Unregulated Crypto currency is a lazy investment that tilts more on outflow of FX rather than inflow.. it is death sentence to import dominated countries.

E.g- I buy bitcoin with N10m that would be domiciled in source Nation(not Nigeria).. if it rises in 1 year by maybe 10%, I may have gained 1m as an individual, but I have starved my country economy of recycling my 10m if it was domiciled in a Nigerian bank or invested into the society which could have produced more than 10% while creating jobs.. note as an import dominated nation, the chance of loosing that 1m as another escaped forex is 95% on foreign goods while 5% I may spend on local food.

The Nigerian greed for small margins has blinded a lot of people, imagine Crypto currency trading far beyond your indigenous Stock exchange and some feel it's okay

Two questions

1. What is the source nation you're referring to?

2. Hope you know when one buys bitcoin, you're not buying from thin air. You are buying from someone else and paying the person. Exchanges only faciliate this process by ensuring it's safe and secure. So how does this bypass banking?

Esseite:
When countries prop up their indigenous digital currency, it's no different from the regular e-wallet. Would Nigerians patronize Nigerian digital coins?

Till it's dome, no one can say.
We already use our indigenous naira.
If not that CBN is bent on devaluation of the naira by encouraging roundtripping. Highly connected folks cam make billions of naira out of thin air by just making a few phone calls...get dollar at CBN rate and sell at market rate. Even Sanusi confirmed this and we wonder why the naira is on a downward slide.

It's not the person selling akara or the bus driver causing the dollarisation of the country, devaluation of the naira and subsequent inflation.

How can more money be traded in crypt0 in Nigeria than on our stock exchange? Simple...the stock exchange is a corrupt mix

Esseite:
Some of us have always known cryptocurrencies were created to kill off poorer/small countries..

How Nigerians are helping kill Nigeria through shift to crypto is amazing. It's just extreme greed.

Do they know the volume of USD Forex that escapes via cryptos.

I see China and russia banning it aswell real soon.

On the contrary, China is racing to be one of the frist countries to roll out their digital currency.
Most bitc0in miners are in China

plaindealer:
This is a good move by the CBN, it's dangerous and counter productive for the general population to shift traditional banking, trading and investment system from the banking and regulatory structure to unregulated and counterproductive crypto currency system.

Money inflow and outflow through the banking system guarantees availability of funds for investments, loans and financing across the general population, but when you remove money from the banking system to a side person to person asset transaction, you are effective remove money and forex from market, you are no longer recycling money through the system to keep the economy going, you are denying funds for loans, business financing, housing mortgage and so on.

Rich and developed countries can afford to allow crypto in their countries, but Nigeria can not especially when Nigerians are now turning dollar remit from abroad into a person to person crypto deal.

Crypto is a valuable tool for money launderers, shady dark web dealings, drug trade, human trafficking transactions, terrorism funding and so on..

You can not keep complaining about the economy, lack of jobs and infrastructures while at the same time sabotaging the same economy with crypto.


You can not have ot both ways, crypto is not goo for us at the moment..

Brother you're confused.

Crypt0 became more popular in Nigeria over the last 18 months. Before that, how many of those things you mentioned were in place?

It doesn't replace the traditional banking system. To buy, I'd still have to deposit into a bank account and withdrawals are also into a bank account

Nigeria is bereft with drug trade, human trafficking transactions, terrorism e.t.c. how many of them are done via crypt0?

Learn to understand stuff

iamJ:
it's not going to, government can't tax it and it doesn't provide any benefit to the society, it's only criminal elements and speculators that it is beneficial to.

You are as ignorant as they come

I don't get... Is this supposed to be news?

If government investments are not functional or valuable what would they now be?

spyder880:
Those are imported doors that could be assembled, it has thick frames, good quality finish and architraves. Each room door costs around N70,000, toilet doors will be about N45,000.

Thanks... They're good quality doors though pricey.

Also, are the tiles Nigerian or foreign?

JayromWrites:
Thanks


I'll just hodl for a while


But I have some money on my naira wallet already.. the we thinking there was a qoin out there on roqqu worth risking om

I don't trade on rokku and not sure what's available there...
On coyns, I've shared thoughts on some recently

ModelX:
My research shows they never pump so soon after pnd. Look at what Doge is doing. I finally sold now at crippling loss.
Could be worse.

Stmx_ is tempting me again.

Hehe... Finally...
The plan is always to frustrate folks into capitulation so whales can fill their bags and repeat thesame process...
Doge had a exit pump which was truncated at 0.5. I advised folks here to take advantage of it to empty their bags even if it was at a loss but more were still asking where to buy doge from...
I wouldn't be surprised if it breaks down soon..

On exrp... Something about it makes we think it'd pump relatively soon ish and surprise folks...
Either way, I'm also waiting for an exit pump to empty my bags..

JayromWrites:
senior men in the house,


I've counted my losses from Rip

please any advice on which qoin to buy atm at Roqq.u

Another ripple victim...

How much of your portfolio in in xrp... Or have you exited already?
One thing you should do before looking for what to buy, take a note of what went wrong with your xrp trade... If possible write it down. This market flows in cycles and scenarios can be quite repititive. It'd test your errors until you learn from there... So it's worth reviewing losses

On what to buy, I'd say the market is getting overheated... Folks are overleveraging and the market may look to flush them b4 any further move. So it may be better to wait towards the weekend/early next week for a dip. That said, don't forget that eith has broken ATH and altys will likely boom soon.

It might be worth holding unto your exrp (if you're still in it) as it may pump when others dip