Currency competition can succeed in calming inflation and preventing the sort of manipulation of interest rates and prices to which governments have historically been prone.
This is a partial vindication of Hayek (1976), who argued in favour of breaking the state monopoly on money as a way to ensure the stability of the official currency[sic].
"[2]Bitcoin was initially looked upon with scepticism and associated with Ponzi schemes such as Bitconnect, OneCoin,[citation needed] and Mavrodi Mudial Moneybox (MMM).
[citation needed] The official exchange rate in Nigeria of the Naira to foreign currencies is set by the Nigerian Central Bank,[4] and thus not by forex markets.
The CBN issued banks with the instruction that they ensure that they do not hold, transact, or in any way use virtual currencies and that customers of those banks that are virtual currency exchanges ensure that they have anti-money laundering regulations in place and otherwise terminate their relationship with those customers and report they are suspicious transactions to the Nigerian Financial Intelligence Unit.
[2] On the 7 February 2021 statement, the CBN cited its need to protect the public from threats by unregulated activities that are potential areas of illegal operations.
[9] In addition to discussing the impact on Monetary and Fiscal Policy, researchers at the CBN suggest that cryptocurrencies could have a positive effect on the agricultural and education sectors in Nigeria.
In the agricultural sector, they suggest that blockchains have a significant potential to enhance access to finance by connecting the technology to their business model which can remedy food security issues.