In a pivotal move that marks a significant turning point for XRP, Nigeria has recently altered its policy concerning commercial banks and their interactions with cryptocurrency exchanges. This development, highlighted in a recent Forbes report, follows a circular issued by the Central Bank of Nigeria (CBN) on December 22nd, granting Nigerian banks permission to engage with crypto exchanges. This decision signifies a remarkable shift in Nigeria’s approach to cryptocurrencies, transitioning from restriction to inclusion and positioning the country among those with clear crypto regulations.
things are about to get really interesting in Nigeria!! what a Christmas present!🎁
Nigeria's CBN just removed restrictions on crypto transactions. a 180 degree shift from the total ban in 2021.
we now have clear guidelines for crypto, but with stringent customer KYC and… pic.twitter.com/cXhKpWmVFO
— gwera 🟢🟡🔴 (@notgwera) December 22, 2023
CBN Once Banned Crypto In Nigeria
Nigeria had previously imposed a ban in 2021 that restricted banks from servicing crypto exchanges. However, the recent circular from the CBN overturns this ban, marking a progressive step in the nation’s stance toward the cryptocurrency market.
XRP, known for its speed and cost-efficiency, has been widely adopted in Nigeria, particularly for everyday transactions amid economic challenges. The Central Bank of Nigeria acknowledged Ripple, the primary distributor of XRP, in its 2023 Report on Digital Currencies, recognizing XRP’s utility in facilitating remittances, cross-border payments, and secure Naira management.
Potential Impact on XRP
With banks now authorized to collaborate with crypto platforms, industry analysts anticipate a potential surge in XRP usage across Nigeria. The permission for millions of crypto-savvy citizens to access XRP through trusted financial institutions sets the stage for exponential growth. Jeremy Allaire, CEO of Circle, the company behind USDC, emphasized the significance of this development, stating, “This is big news.”
The move positions Nigeria as a global leader in digital asset adoption, showcasing the nation’s embrace of blockchain technology and signalling a future where cryptocurrencies are recognized as legitimate financial instruments.
While the United States boasts the world’s largest crypto market, it lags behind some other nations regarding crypto regulation. The CBN’s decision in Nigeria represents a milestone for XRP and the broader crypto market in the country. Although regulatory frameworks and infrastructure development remain ongoing concerns in the U.S., Nigeria’s proactive approach can potentially set a precedent for other nations exploring crypto regulation.
Market Response and XRP Price
Surprisingly, despite the significant development, the price of XRP has not reflected immediate effects. At the time of writing, XRP is trading at $0.6338, experiencing a marginal 0.86% decrease with a 30.75% drop in trading volume over the last day.
Analysts and market observers will closely monitor whether the newfound accessibility to XRP through banks will translate into a surge in adoption and price appreciation. The unique properties embedded in XRP and its popularity in Nigeria position it to benefit significantly from this recent wave of regulatory clarity and accessibility.