- The Nigeria ban on cash withdrawals from government accounts will take effect less than a week after the country conducts a presidential election next month.
- With millions of Nigerians anguished in abject poverty, Bitcoin and Cardano have been offering hope to those locked out of the banking industry.
Following the successful deployment of the digital Naira, the Nigerian government is keen to push its economy toward cryptographic payments. According to Nigerian Financial Intelligence Unit Chief Executive Modibbo Tukur, cash withdrawals from government accounts will be discontinued from March 1. Tukur indicated that the move is in line with the government’s need to tackle illicit activities from top to bottom. As such, cash withdrawals from government accounts will be marked for money laundering investigations.
“On March 1, if there is a cash withdrawal from a government account, even if it is one naira, we are going to trigger off money laundering and corruption investigations,” he told reporters.
The country has been suffering from terrorist extremists dubbed Boko Haram, and now wants to cut off their financial support by digitizing the economy.
Interestingly, the Central Bank of Nigeria limited weekly over-the-counter cash withdrawals to 100,000 nairas ($225) for individuals and 500,000 nairas ($1,124) for corporations, earlier last month. Additionally, the country limited ATM withdrawals to $45 per day, with denominations of 1,000 nairas ($2.25) and 500 nairas ($1.10) not available on cash vending machines from January.
With all the limitations in place, the president and the central bank can authorize exceptions for excess withdrawals in cash from ATMs.
“Imposing the restrictions will mitigate the risk of exposure of public servants to these crimes and protect the financial system from continuous abuse,” according to guidelines published by the NFIU.
Notably, the Nigeria ban on cash withdrawals from government accounts will take effect less than a week after the country conducts a presidential election next month.
Nigeria Helps Bitcoin and Cardano Shine
While Nigeria is tackling corruption through a cash ban, Bitcoin and Cardano adoption in the country is expected to rise exponentially in the coming years. With millions of Nigerians anguished in abject poverty, Bitcoin and Cardano have been offering hope to those locked out of the banking industry. Moreover, Bitcoin and Cardano do not limit any Nigerian from transacting any amount of cash both locally and internationally.
Bitcoin and Cardano adoption in Nigeria has significantly increased in the last few years fueled by the deteriorating economy. As of Friday, data from TradingView shows one dollar is exchanged for 449 Nigerian Nairas.
The case is worse on cryptocurrency exchanges, which are offering Naira swaps at double the market price. For instance, one USDT on the Remitano crypto exchange can fetch approximately 738.75 NGNR.
The Cardano ecosystem has been working closely with the Nigerian market to push Web3 adoption to the individual level.
William Phelps, Investment manager at Adaverse was at the recently concluded @cyberchain_ng #Benin2022 conference on Friday to reiterate the Cardano mission in Africa to scale web 3 solutions through Adaverse. #startup #blockchain #cryptocurrency #Cardano #emurgo #Funding pic.twitter.com/HSa45ljI4f
— Adaverse Accelerator (@Adaverse_Acc) July 25, 2022