legal tender in nigeria

by Chuka Francis. Reference was made to section 20 of the CBN Act of 2007, which states that the currency notes issued by the CBN shall be legal tender in Nigeria…for the payment of any amount. In a … More specifically, the CBN is concerned about the fact that cryptocurrencies are issued by unregulated and unlicensed entities, and that their use in Nigeria goes against its key mandates enshrined in the CBN Act (2007) as the issuer of legal tender in Nigeria. In effect, the use of cryptocurrencies in Nigeria are a direct contravention of existing law. Also, the CBN on February 28, 2018 issued a press release, which reiterated its earlier January 12, 2017 Circular to Banks and Other Financial Institutions on Virtual Currency Operations in Nigeria, by which it stated that virtual currencies are not recognised as legal tender in Nigeria and are used at the peril of the user. The Central Bank of Nigeria (CBN) is incentivizing citizens to use licensed international money transfer operators ... stating they are not a form of legal tender in Nigeria. Cryptocurrency is not a legal tender in Nigeria- CBN Governor TL;DR Breakdown Nigeria CBN governor says cryptocurrency are illegal in the country Other members of the authorities share his views. View pictures in App save up to 80% data. Nigeria: 2. Accessed Dec. 17, 2020. Abuja (FCT) Civil Engineers and Medical Equipment Suppliers needed by the Federal Medical Centre Birnin Kudu Jigawa State. Well to answer this question, No, bitcoin is not illegal in Nigeria and although bitcoin is not regarded as a legal tender by the central bank of Nigeria (i.e. Central Bank of Nigeria. This is necessary to ensure monetary and price stability. Each jurisdiction determines what is legal tender, but essentially it is anything which when offered ("tendered") in payment of a debt extinguishes the debt. It is the CBN’s objective to ensure monetary and price stability, issue legal tender in Nigeria, maintain external reserves to safeguard the international value of the legal tender currency, promote a sound financial system in Nigeria, and act as a banker and provide economic and financial advice to the Federal Government. Apr 12, 2021. On 1st July, 1959 the Central Bank of Nigeria issued the Nigerian currency notes and coins and the West African Currency Board notes and coins were withdrawn. There is no official ban or restrictions on the use of bitcoin in Nigeria. I was really interested in proffering legal advice in such a ‘techi’ area. 0 #1. After the announcement, tons of Nigerian bank notes were transported in an effort to acquire foreign exchange. The CBN is the sole defendant in suit FHC/ABJ/CS/146/16, filed by Mr. Bitcoin is not a legal tender in Nigeria – CBN 01/09/2018 Bitcoin is the most popular digital currency and has soared in value from 4 cents in 2010 to $19,000 by December 2017. CENTRAL BANK OF NIGERIA Banking Department Central Business District p.M.B. This Letter is with immediate effect. In Nigeria, digital assets are not legal tender neither are they grouped as shares or Securities and presently, there are no rules or laws on how to buy BTC and trade digital assets. May 11, 2021. ensure monetary and price stability, issue legal tender currency in Nigeria, maintain external reserves to safeguard the international value of the legal tender currency, promote a sound financial system in Nigeria; and act as Banker and provide economic and financial advice to the Federal Government. Share on Facebook Share. “In effect, the use of cryptocurrencies in Nigeria is a direct contravention of existing laws. The focus in this case was on payment rather than pricing. Bitcoin, other virtual currencies not legal tender in Nigeria – CBN. Apr 16, 2021. Africa's largest economy has become a huge market for crypocurrency trade, but the central bank has warned for several years that the currencies are not regulated or legal tender in Nigeria. Building Contractors needed by UNDP. Another report published last year by The Chartered Institute of Bankers of Nigeria (CIBN), also revealed that Nigeria was one of the African countries with the highest number of new users of Bitcoin in 2018, despite several warnings from the Central Bank of Nigeria that Bitcoin is not a legal tender in the country.. In 1959, the central bank of Nigeria (CBN) began the distribution of the Nigerian currency notes, and in 1962, the legal tender was changed again. 0 Click for thumbs up. Wisdom Elum, a lawyer in Mr. Falana’s firm asking to stop the use of the U.S. dollar as a legal tender in Nigeria as it contravenes Section 20 of the CBN Act. The Central Bank of Nigeria looks like it is not ready to bend its stance towards the lifting of crypto ban in Nigeria. The central bank of Nigeria doesn’t even acknowledge digital assets as a legitimate tender. 0 36 1 minute read. The coin would be utilized to project, coordinate and monitor agricultural services. Read also: Interest rate for banks in Nigeria. Hostile: In January 2017, Nigeria’s central bank outlawed bitcoin and digital currencies, but also openly pointed out that it can’t actually regulate cryptocurrency ; Banks and financial institutions are prohibited from using, holding or transacting with cryptocurrencies; A legal framework for blockchain regulation is being considered; Norway: 4. Yashua Chong 4 weeks ago. The Central Bank of Nigeria (CBN) has reacted to condemnations trailing the directive to Deposit Money Banks (DMBs) to desist from transacting in cryptocurrencies. 8 May 2018 | Oghomwen Toni-Osagie ABUJA - The Central Bank of Nigeria (CBN) has again cautioned Nigerians to be wary of investments in cryptocurrency, stressing that virtual currencies are not legal tender in Nigeria. Rather, it sees Bitcoin and other cryptocurrencies with skepticism. The Central Bank of Nigeria, on July 1, 1959 issued the Nigerian currency notes and coins and the West African Currency Board notes and coins were withdrawn. "Legal Tender." - Innoson said it supports the CBN's ban on cryptocurrency, as the digital asset is not a legal tender PAY ATTENTION: Over the years, we have impacted so many lives together. The Central Bank of Nigeria regulates the entire money supply in the economy. Nigeria's central bank on Friday ordered banks and financial institutions to close down accounts involved in the transfer or exchange of cryptocurrencies, warning of sanctions it they did not comply. The regulator bank had also warned that such currencies are not accepted as legal tender in Nigeria. bitcoin is seen as a means of payment for goods and services in Nigeria), it does not stop one from buying and conducting transactions with bitcoin. Add Comment. Cryptocurrencies are not legal tender in Nigeria: Cryptocurrencies are not legal tender in Nigeria. First, in light of the fact that they are issued by unregulated and unlicensed entities, their use in Nigeria goes against the key mandates of the CBN, as enshrined in the CBN Act (2007), as the issuer of legal tender in Nigeria. Central Bank of Nigeria. It sees bitcoin and other cryptocurrencies with skepticism Birnin Kudu Jigawa State currency was changed again during the time the! 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