Impact of Cryptocurrency Ban on the Development of Digital Currency in Nigeria (original) (raw)
2022, Renaissance University Journal of Management and Social Sciences
Cryptocurrency, an innovation in digital finance powered by blockchain technology is changing the payment systems and the role of money in this current financial regime. The influence of technology innovation is far-reaching, as it affects the entire financial services market and alters the landscape for intermediation. The Nigerian government, through the CBN, placed a complete ban on banks and traders from transacting with cryptocurrency. This study, therefore, investigated the effects of cryptocurrency ban on the development of digital currency in Nigeria. This study is premised on the realism theory. The study employed descriptive survey research design and the population of the study was made up of 165 bankers, university lecturers and cryptocurrency traders. The study sampled all respondents using the purposive sampling technique and the data were gathered with the use of structured questionnaire. The Statistical Package for Social Science (SPSS) was used to analyse the data and the presentation was done using tables and descriptive analysis. The findings show that the ban on cryptocurrency plays a significant role in the introduction of e-Naira yet, there is no increase in the purchase and usage of e-Naira. Also, the ban led to a drawback on financial inclusion and has reduced capital inflow of commercial banks in Nigeria. The study concludes that the emergence of cryptocurrency has necessitated the need for cyber security in bank operations. This is a wake-up call for banks and other financial institutions to strengthen their cyber security network against cyber fraud
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