While Nigeria punishes those caught trading cryptocurrencies, Zimbabwe is considering accepting this as a legal payment


It is the first time that Nigeria's Supreme Bank has imposed sanctions that include a ban on cryptocurrencies earlier this year. Keep in mind that in February, CBN notified banks across the country that cryptocurrencies were banned. Banks have also been instructed to identify accounts associated with crypto traders and close those accounts.

In a recent circular to the bank, CBN said those affected had violated a previous policy that banned cryptocurrencies in the country. As a result, their bank account is closed and all funds in the account are "made unknown".

Interestingly, while this is happening in Nigeria, Zimbabwe is trying to get cryptocurrencies to be accepted as legal payments. Business Insider Africa assumes that the South African country is currently seeking opinions from companies and will also be speaking to citizens as part of its survey.

However, the head of the e-government technology unit in Zimbabwe, retired brigadier general Charles Wequet, who unveiled the plan at a computer summit over the weekend, said caution should be exercised as the effects of cryptocurrency adoption are not yet clear. He said governments around the world are still trying to develop guidelines for managing cryptocurrencies and that the current uncertainty is due to the fact that cryptocurrencies are a "fundamental departure from previously known financial instruments."

Despite the uncertainty, Wekwete assured that the Zimbabwean government “has put in place mechanisms to try to get opinions from various sectors of society so that it may be able to formulate policy. Sooner or later (the government) will make a statement, but we are not there. The consultation process is already underway.”

According to a recent Chainalysis report, acceptance of cryptocurrencies in Africa has increased by 1,200% in the last year. The report shows that Africa is the third fastest growing crypto economy in the world. And despite the ban in Nigeria, many people in the West African country prefer digital coins because it helps avoid bank fees and currency restrictions.

 writer: Emmanuel Abara Benson

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