Nigerian crypto exchange Yellow Card believes the Central Bank of Nigeria’s (CBN) recent guidelines lifting the crypto transaction ban present an opportunity for more legitimacy and integration with the traditional financial system and its dealings with crypto transactions, potentially expanding its user base.
In an interview with Cointelegraph, the chief data protection officer and vice president of legal, commercial and product at Yellow Card, Lasbery Oludimu, said the peer-to-peer market — once dominant during the ban — will change with increased banking support. This shift may foster competition and innovation in the Nigerian crypto space.
Oludimu confirmed that the exchange believes cryptocurrency usage will spike in Nigeria in 2024 due to the CBN’s new guidelines and the lifting of the ban on crypto transactions. She said this directive would ensure and facilitate a more structured and regulated environment for crypto transactions.
The Yellow Card executive said the reentry of banks would introduce increased competition and enhanced transaction efficiency, which isn’t bad for the ecosystem. Oludimu emphasized that the CBN guidelines could encourage collaboration with traditional financial institutions to explore opportunities within the crypto space, paving the way for greater integration and cooperation between traditional finance and digital assets.
“This decision is a step in the right direction to foster innovation, as well as provide a conducive environment for legitimate businesses like Yellow Card to operate, thereby benefiting users, increasing the crypto adoption rate in Nigeria and the broader crypto ecosystem.”
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Highlighting the positive impact of the CBN guidelines, Oludimu stated that the new policy creates a regulated environment, boosting confidence and trust in the Nigerian crypto sector. Yellow Card expects increased user adoption and engagement due to the clarity provided by the regulatory framework, attracting more individuals and companies to the crypto space in the coming months.
According to Oludimu, Yellow Card plans to seek strategic partnerships, grow its user base, and contribute to advancing Nigeria’s digital assets ecosystem by introducing innovative solutions aligned with the newly established regulations.
The CBN released guidelines for digital assets to allow virtual assets service providers, which include cryptocurrencies and crypto assets organizations, to open accounts with Nigerian banks on Dec. 22, 2023.
This came two years after the central bank restricted banks and other financial institutions from operating accounts for cryptocurrency service providers.
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