Central Bank of Nigeria Releases Guidelines for Banks on Digital Assets

The Central Bank of Nigeria (CBN) has issued guidelines for banks regarding digital assets, indicating a relaxation of the country's strict stance on crypto. The guidelines, released on the bank's website, provide more information on the decision to allow virtual asset service providers to open accounts last month. While the move is a reversal of Nigeria's previous ban on financial institutions servicing crypto firms, the rules do not permit Nigerian banks to hold or trade cryptocurrencies on their own behalf. The CBN's push for increased oversight of digital assets is in line with similar initiatives in neighboring African nations, where cryptocurrencies are being used as a hedge against inflation.