Nigeria’s Central Bank allows banks open accounts for crypto firms
Nigeria, the nation with the highest rate of cryptocurrency adoption after India, allowed lenders to deal with companies providing digital tokens, reversing a ban the central bank introduced in 2021, the BusinessDay reported.
The Central Bank of Nigeria asked lenders to open accounts for crypto firms, according to the report, which cited a circular dated Friday. In February 2021, the central bank had ordered deposit-taking financial institutions to immediately close accounts transacting in or operating cryptocurrency exchanges, saying such deals are “prohibited.”
The easing of rules will be a boost for crypto exchanges, which have been seeking to expand in the nation that ranks second in blockchain data company Chainalysis Inc.’s adoption index. Cryptocurrency transactions in Africa’s most-populated nation grew 9%, Chainalysis said in September, even as prices of virtual assets such as Bitcoin plunged.
Nigeria’s currency has weakened almost 49% this year after President Bola Tinubu eased rules in a bid to remove the spread between the official and unauthorized street rates. A depreciating currency spurred residents to seek crypto assets.
