Effects of CBN Regulatory Restriction on Cryptocurrency Continued Adoption in Nigeria Theoretical Perspectives

Abstract

The study explored the effects of CBN regulatory restrictions on bitcoin usage in Nigeria. The goal of this study was to investigate the effects and implications of Central Bank of Nigeria's regulatory restrictions on cryptocurrency adoption in Nigeria. The study used a survey research approach and collected data through interviews. Purposive sampling was utilized to select three participants for the interview. The gathered data were examined and checked against available literature. The researcher discovered, among other things, that the sudden restriction of cryptocurrency trading and transactions has deeply shaken the crypto market in Nigeria, caused emotional shock and trauma to crypto traders, and prevented traders from buying cryptocurrencies with their credit or debit cards issued by Nigerian banks.  The implications of these include, among other things, that the restriction may make it difficult for people to own cryptocurrencies since they cannot buy or sell cryptocurrency. It will lead to continuous depreciation in the value of the naira and loss of money by Nigerians and end up causing serious unemployment, impoverishment, and hunger among unemployed youths who trade on cryptocurrency as a means of livelihood. The researchers therefore recommend that urgent interventions are highly needed from the government, the Security and Exchange Commission, and other stakeholders to deliberate on the potential far-reaching effects of the Central Bank of Nigeria’s stance on crypto currency. The federal government, through the Central Bank of Nigeria, can regulate the crypto industry by taxing funds generated either through withdrawal deposits or through the profits of exchangers.