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Nigeria: Bitcoin’s value explodes when the central bank wants to place limits on cash

The price of one Bitcoin (BTC) in Nigeria has skyrocketed to the equivalent of $38,000 in the local currency, the naira… The price of Bitcoin in Nigeria has skyrocketed, well above global market levels, following continued central bank efforts to push citizens towards digitized cash.

At the time of writing, the price of 1 BTC on the Nigerian NairaEX exchange is 17 million nairas, equivalent to a whopping $38,000.

This is more than a 60% premium to Bitcoin's current market price of approximately USD 23,700 now.

The news comes as the Central Bank of Nigeria continued to impose limits on ATM cash withdrawals, as part of an ongoing effort to accelerate the transition to a cashless society.

Earlier this month, the central bank imposed a cap on cash withdrawals following an announcement in December. Starting January 9, citizens will be able to withdraw a maximum of 20,000 nairas (about $43.50) per day from ATMs, with a weekly limit of 100,000 nairas (about $217).

The move came just days after the new naira banknotes went into circulation, aimed at curbing inflation and money laundering. The central bank has set a January 24 deadline for Nigerians to exchange older, higher-denomination banknotes for the new currency.

However, there were long queues and complaints about not enough time to meet the deadline. The central bank has now extended the deadline to February 10, the BBC reported on January 29.

In the end, when a central bank wants to limit people's freedom, the effect is the explosion of every alternative payment system, first of all Bitcoin. The life of Bitcoin is linked to the central powers' desire for repression.


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The article Nigeria: the value of Bitcoin explodes when the Central Bank wants to place limits on cash comes from Scenari Economics .


This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/nigeria-il-valore-di-bitcoin-esplode-quando-la-banca-centrale-vuole-porre-limiti-al-contante/ on Tue, 31 Jan 2023 07:00:53 +0000.