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Nigeria’s ban on cash withdrawals from public accounts will come into effect less than a week after a presidential election is held next month. With millions of Nigerians anguished in abject poverty, Bitcoin and Cardano have offered hope to those excluded from banking.
Following the successful rollout of the digital Naira, the Nigerian government is keen to push its economy towards crypto payments. According to the Director General of the Nigerian Financial Intelligence Unit, Modibbo Tukur, cash withdrawals from government accounts will be halted from March 1. Tukur said the move is in line with the need for governments to tackle illicit activities from top to bottom. Thus, cash withdrawals from public accounts will be flagged for money laundering investigations.
On March 1, if there is a cash withdrawal from a government account, even if it is naira, we will trigger investigations into money laundering and corruption, he said. he told reporters.
The country has suffered 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 cash withdrawals over the counter to 100,000 naira ($225) for individuals and 500,000 naira ($1,124) for businesses, early last month. Additionally, the country has limited ATM withdrawals to $45 per day, with denominations of 1,000 naira ($2.25) and 500 naira ($1.10) not available at ATMs from of January.
With all the limitations in place, the president and the central bank may allow exceptions for excess cash withdrawals from ATMs.
Imposing restrictions will mitigate the risk of public officials being exposed to these crimes and protect the financial system from continued abuse, according to guidance issued by the NFIU.
Notably, Nigeria’s ban on cash withdrawals from public accounts will come into effect less than a week after the country holds a presidential election next month.
Nigeria helps Bitcoin and Cardano shine
As Nigeria tackles corruption through a cash ban, the adoption of Bitcoin and Cardano in the country is set to increase exponentially in the coming years. With millions of Nigerians anguished in abject poverty, Bitcoin and Cardano have offered hope to those excluded from banking. Moreover, Bitcoin and Cardano do not prevent any Nigerian from carrying out cash transactions both locally and internationally.
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Adoption of Bitcoin and Cardano in Nigeria has increased significantly over the past few years, fueled by the deteriorating economy. On Friday, data from TradingView shows one dollar being traded against 449 Nigerian Naira.
The case is worse on cryptocurrency exchanges, which offer Naira swaps at double the market price. For example, one USDT on the Remitano crypto exchange can yield around 738.75 NGNR.
The Cardano ecosystem has worked closely with the Nigerian market to push Web3 adoption at the individual level.
William Phelps, Chief Investment Officer at Adaverse, was at the recently concluded @cyberchain_ng #Benin2022 conference on Friday to reiterate Cardano’s 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
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