Nicholas Anthony, a policy analyst in the Cato Institute’s Center for Monetary and Financial Alternatives, says the Nigerian government, not cryptocurrency, is to blame for devaluation of the naira.
"The Nigerian government may wish the problems with the naira could be simply blamed on cryptocurrency, but these problems existed long before bitcoin was even created," Anthony told Federal Newswire. "Restricting access to alternatives is only to punish Nigerian citizens."
"Just as when the Nigerian government engineered a cash shortage that led to protests and riots, it is the government that is ultimately responsible for the devaluation," Anthony said.
Inflation for the naira rose to 22.9% in January, the highest level since 1996, reported Reuters. Nigeria is home to the second largest population of crypto, reported the Crypto Council for Innovation, and Bloomberg reported that Nigerians use cryptocurrency “as a hedge against frequent devaluation of the naira.”
The Nigerian government in February “ordered telecommunications companies and other internet service providers in the West African nation to block access to cryptocurrency trading platforms,” including Coinbase, Binance, and Kraken.
Bayo Onanuga, special advisor on information and strategy to Nigerian President Bola Tinubu, said in a February 21 post on X that cryptocurrency platforms are “trying to manipulate our national currency to Ground Zero," and that “crypto should be banned in our country, or else this bleeding of our currency will continue unabated.”
Two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, were detained by the Nigerian government on February 26, reported Coinbase, after being invited to meet with Nigerian officials in Abuja. Gambaryan is an American citizen and former Internal Revenue Service (IRS) special agent who currently serves as Binance's head of financial crimes compliance. Anjarwalla, a U.K.-Kenyan national, is Binance's regional manager for Africa. Neither man has been charged with a crime.
Binance said in a March 13 post on X that it is dedicated "to promoting the responsible growth of crypto in Nigeria" and "will continue to work with Nigerian authorities to bring our friends and colleagues home."
Anthony's research for the Cato Institute includes topics such as central bank digital currency, cryptocurrency and financial economics. Also a fellow at the Human Rights Foundation, he attended Towson University and George Mason University.
