Yellow Card Forecasts Crypto Boom in Nigeria by 2024 Under New CBN Guidelines

One of Nigeria’s prominent cryptocurrency exchanges, Yellow Card, is optimistic about a substantial surge in cryptocurrency usage within the country starting in 2024, following the release of guidelines by the Central Bank of Nigeria (CBN) that lifted the ban on crypto transactions. In an exclusive interview with Infostride News, Yellow Card’s Chief Data Protection Officer and Vice President of Legal, Commercial, and Product, Lasbery Oludimu, emphasized the transformative impact of the CBN’s decision on public perception and the traditional financial sector in Nigeria.

According to Oludimu, the lifting of the ban represents a notable shift in attitude towards cryptocurrencies among the general public and traditional financial institutions. He pointed out that the CBN’s move also indicates a growing acknowledgment of the potential benefits and significance of digital assets in the ever-evolving financial landscape. This positive development is expected to foster increased collaboration between traditional financial institutions and the burgeoning crypto space, leading to greater integration and mutual cooperation.

Highlighting the crucial aspect of trust and confidence, Oludimu emphasized that the CBN’s guidelines would instill a sense of confidence and trust in the crypto business within Nigeria. He expressed optimism about a surge in user adoption and engagement in the coming months, attributing this growth to the clarity provided by the regulatory framework. With a regulated environment, Yellow Card aims to facilitate greater participation in the formal financial sector, especially in regions with limited traditional banking infrastructure, thereby contributing to increased user activity and platform growth.

In light of the evolving regulatory landscape in Nigeria, Oludimu stressed the importance of collaboration between the government, the Central Bank, and players in the crypto industry. He underscored that such collaboration is vital for shaping the future of digital finance in Nigeria. Yellow Card stands ready to engage constructively with regulators and policymakers, offering insights and expertise to contribute to the formulation of inclusive and effective regulations. Oludimu believes that collaborative efforts can lead to the development of a balanced regulatory framework that encourages innovation, protects user interests, and fosters sustainable growth within the digital finance sector.

Providing context to the recent developments, the CBN released guidelines for virtual assets, allowing virtual asset service providers (VASPs), which include cryptocurrency and crypto asset organizations, to open accounts with Nigerian banks. This decision marked a significant shift from the apex bank’s previous stance, where it had restricted banks and financial institutions from operating accounts for cryptocurrency service providers.

The guidelines, issued on December 22, 2023, outline the conditions for opening accounts by virtual asset providers. Despite this positive step, the CBN maintained its prohibition on banks and financial institutions from holding, trading, and/or transacting in virtual currencies on their accounts. The CBN justified the issuance of these guidelines by citing global trends that underscored the necessity of regulating the activities of virtual VASPs.

Notably, the ban on crypto transactions, which had been in effect for two years, positioned Nigeria as one of the top countries with a significant number of crypto users globally. Reports, including one by Trading Browser earlier in the year, indicated that Nigeria had the largest number of cryptocurrency users and owners in the world. This statistic underscores the potential impact of the recent regulatory shift on the cryptocurrency landscape in Nigeria and the optimism expressed by Yellow Card for a thriving crypto ecosystem in the coming years.