Different means and mediums of transaction for the exchange of goods and services have existed throughout human civilisation. All of these means and mediums are mostly physical, such as metal coins or paper money. The digital form of transaction has emerged as a result of technological advancements, particularly computers and the internet. The majority of financial institutions and governments have promoted online payment as a secure and quick way to exchange actual currency. This kind of currency utilization is an attempt to digitalize physical currency. Complete and real digital currencies (i.e., no physical form) have been introduced from time to time in recent years.

Money’s beginnings are a mystery, but its emergence is not.

Polillo (2011) proposed an intriguing hypothesis on currency production. The theory proposes that there are general social mechanisms that enable various types of networks and organizations to establish currencies. He also offered the concept of money as “many currencies,” arguing that civilizations constantly modify money in novel ways to better suit their requirements through social activities.

According to Berentsen and Schär (2018), Bitcoin (the first recognized cryptocurrency) began with a white paper published in 2008 under the pseudonym “Satoshi Nakamoto,” which was distributed over a cryptography mailing list and resembled an academic study. It was revealed that the original goal of Bitcoin’s designers was to create a cash-like payment system.

According to Silva (2016), cryptocurrency is a system characterized by three main axes: first, a public system of transaction registration called blockchain, which serves as an accounting book of its entries and exits; second, an encryption algorithm called asymmetric encryption-associated with a proof-of-work, which is used to validate operations with the currency; and third, a decentralized computer network according to the design of the users (algorithm).

When the qualities of money are put in perspective, cryptocurrency is a virtual currency that uses a web-based communication protocol to aid in the transfer of wealth from one person to another, but when the qualities of money are put in perspective, cryptocurrency is a virtual currency that uses a web-based communication protocol to aid in the transfer of wealth from one person to another.

With over $500 million worth of Bitcoin moved in the last five years, Nigeria boasts the world’s second-largest Bitcoin market. The CBN’s directive on cryptocurrency transactions will, understandably, have an impact on the Nigerian cryptocurrency market because it effectively prohibits traders from purchasing cryptocurrencies with credit/debit cards issued by Nigerian banks or receiving proceeds from cryptocurrency sales from exchanges that facilitate cryptocurrency buying and selling (

The SEC then published a statement on February 11, 2021, noting that it will work with the CBN to evaluate and better understand the highlighted hazards of cryptocurrencies in order to guarantee that suitable regulations are in place if cryptocurrency transactions are allowed in the future.


Cryptocurrency trading is one of the fastest growing ways to make money in the world today. People participate in the cryptocurrency market as either investors or traders. The development of Bitcoin in 2008 by an unknown person or group of persons using the name Satoshi Nakamoto, with widespread use beginning in 2009, provided a way for people to diversify their sources of income and survival. Rather of putting their money in banks, many people have begun to invest in Bitcoin, which is now valued approximately 21,057,454.90 Naira and is expected to continue to rise. Unemployed youngsters began investing in the cryptocurrency industry, leaving their money there for a long time before cashing out with interest. Some people have developed a Crypto trading platform where anyone may buy and sell cryptocurrency.

The Central Bank of Nigeria (CBN) sent a letter to local financial institutions on Friday, February 5, 2021, instructing banks to close all bank accounts linked to cryptocurrency trading platforms. This came as a shock to Nigerians and cryptocurrency traders and investors. This embargo has sparked outrage among Nigerians, who have been venting their frustrations on social media channels, urging the CBN to lift the ban. All bank accounts linked to crypto firms have been closed as a result of the prohibition. Nigerians are no longer able to deposit naira or withdraw monies from the various crypto platforms where they have invested their money into their Nigerian bank accounts.

The CBN’s decision on cryptocurrencies has also piqued the interest of the highest echelons of government, according to (

The Nigerian Senate debated the CBN’s directive on February 11, 2021, with several senators voicing reservations over the restriction on bitcoin transactions. The Senate then decided to invite the Governor of the Central Bank of Nigeria to give a briefing on the CBN’s activities.

As parties consider the potentially far-reaching ramifications of the CBN’s stance on cryptocurrencies in Nigeria, further actions like these may be seen. As a result, the goal of this research is to see if the CBN’s ban on cryptocurrency trading in Nigeria has any impact on Nigerian investors.


The primary goal of this research is to determine the impact of Nigeria’s cryptocurrency ban policy on investors. The study aims to see if the CBN’s crypto ban policy has any negative consequences for crypto investors in Nigeria.


This study is guided by the following research questions:

Does the CBN’s crypto prohibition have an impact on crypto investors’ finances in Nigeria?

Is the CBN’s crypto prohibition discouraging cryptocurrency investors in Nigeria?


In this study, the following null hypothesis was formulated and tested:

H0: Cryptocurrency restriction policy in Nigeria has no negative impact on crypto investors.


This research will be useful to policymakers in Nigeria, as it will inform them about the benefits of cryptocurrency trade and investment in the country, such as the reduction of youth unemployment and crime, among other things. This research will also inform the CBN about the need to review the prohibition on crypto businesses in Nigeria, given that over 97 percent of Nigerians are involved in one or more crypto businesses.

This study will also serve as a resource for academics, students, and researchers who wish to conduct additional research in this or a related field.


This research will look at the impact the CBN’s cryptocurrency ban policy has had on cryptocurrency investors in Nigeria, as well as the potential harm it would do them in the near future. Residents of Lagos State will be included in the study’s sample responders.


The issue of finances, the lack of materials, and the time factor to combine academic work with research activity were the key limitations the researcher faced while conducting this research.


An effect is a change that occurs as a result of an activity or other cause.

Individual coin ownership records are stored in a ledger existing in the form of a computerized database using strong cryptography to secure transaction records, control the creation of additional coins, and verify the transfer of coin ownership. Cryptocurrency: A cryptocurrency, crypto currency, or crypto is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in the form of a computerized database using strong cryptography to secure transaction records, control the creation of additional coins, and verify

A prohibition, whether official or informal, is defined as a prohibition of anything. Bans are enacted to ban specific actions inside a political jurisdiction.

A policy is a statement of intent that is carried out through a method or protocol. A governance body inside a company usually adopts policies.


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