Cryptocurrency Ban in Nigeria: Implications for Domestic and International Trade

Cryptocurrencies such as bitcoin pose a threat to the post-Bretton Woods system because its bitcoin is decentralized. It is neither issued by a government nor stored in a single location. Bitcoin and other decentralised currencies use a distributed public ledger, eliminating the requirement for a trusted third party. This study therefore aimed to examine the challenges on trades and cryptocurrency traders due to the ban of cryptocurrency. This study premised on the liberalist’s perspective of international relations. The study employed descriptive survey research design and the population of the study was made up of 165 bankers, university lecturers and crypto traders. The sampled all respondents using a convenient 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 revealed even though the cryptocurrency ban has reduced virtual buying and selling of goods and services within Nigeria, there are no significant consequences of cryptocurrency ban on domestic and international trade in Nigeria. Also, the study concluded that the ban on cryptocurrencies has a negative impact on Nigerian digital currency traders. Therefore, this study recommends that government should ensure that the laws guiding cryptocurrency should be modified to the interest of digital traders and to protect the economy.