The West African country has been cracking down on digital currencies for months, but according to one report, it has been working on the digital naira all this while.
The Securities and Exchange Commission acknowledged that a recent ban by the bank had disrupted Nigeria’s digital currency industry, while pledging support to promote innovation in the nascent industry.
Nigerian fintech startups, including those in the digital currency sector, have been relying on the bank verification number (BVN) as a primary know-your-customer (KYC) and anti-money laundering (AML) tool.
The central bank’s directive only applied to banks, prohibiting them from processing transactions related to digital currencies, an official said.
The Central Bank of Nigeria announced its “Naira 4 Dollar Scheme” recently, targeting diaspora remittances.
Despite thriving for years now, Nigeria’s digital currency industry faces its biggest threat yet following a central bank ban that has denied it basic banking services.
Senators want the Central Bank of Nigeria governor to brief its Banking Committee on why it ordered banks to shut down digital currency-related accounts in the country.