The Central Bank of Nigeria (allegedly in the aftermath of the 2020 Endsars protests that witnessed possibly the best example in the world of mass decentralized funding through Cryptocurrencies) formally put a stop to banking support services for Cryptocurrency transactions, citing a lack of legal backing and a centralized form of control/regulation ideal for the perpetration of financial crimes like money-laundering and the financing of terrorism.

At the same time, the Securities and Exchange Commission in 2022 formally passed a set of regulations providing the first administrative framework for the use of digital & virtual assets including cryptocurrencies.

This lack of administrative harmony, coupled with the growing trend of government adaptation and regulations of Blockchain and Cryptocurrencies worldwide, prompted the CBN in its newly issued Nigeria Payments System Vision 2025 to issue a specific number of new recommendations on Blockchain, Cryptocurrencies and Stablecoins which will be the focus of this article.

These recommendations are as follows :- 

1. The CBN would henceforth consider the development of a regulatory framework for the potential implementation of Stablecoin offerings – Stablecoins in this case being a type of cryptocurrency/virtual asset designed to be digital adaptations of Fiat currencies like the US Dollar and the Nigerian Naira, thus lacking the volatility typically associated with other cryptocurrencies or digital assets like Bitcoin.

The CBN already has a regulatory framework on its own issued stablecoin – the E-Naira.

2. The CBN will continue its watching brief on ICOs as well as work with SEC to jointly develop a regulatory framework in the event of adoption of an ICO-based investment solution, an ICO or Initial Coin Offering being a digital asset public offering equivalent of a traditional Initial Public Offering , an ICO being used to raise funds from the public through the launch of a Digital Asset , token or Cryptocurrency which can be a general-purpose digital currency (Monero being a good example) or having a specific use on the app that the ICO is associated with (Ethos or carVertical being good examples in this case).

3. There will be considerations for a Central Bank Digital Currency (CBDC). This recommended solution has the advantages of :-

• a). Facilitating better compliance with Anti-Money-laundering/ Combating the Financing of Terrorism (AML/CFT) frameworks.
• b). Payment efficiency for lowering transaction costs.
• c). Control via enabling the CBN to monitor and regulate Blockchain for the purposes of discouraging financial crimes like tax evasion.
• d). Economic development through digital currency value transfers between merchants, consumers, government entities and other parties.
• e). Data Privacy through the use of permitted DLTs(Distributed Ledger Technologies) which are systems of verifiable records of ownership to be distributed rather than relying on a central ledger.
• f). The zero possibility of being able to be counterfeited.
• g). Auditability.

4. The recommendation of a CBDC implementation network and deployment model based on the intelligent combination of a permitted DLT, a fast and lightweight consensus mechanism (such as proof-of-audit), strong cryptography and best-of-breed traditional technologies.

5. The CBN will consider the applicability for API integration on a CBDC to foster innovation.

6. The CBN will also be closely monitoring potential smart contract solutions in other countries and will develop its own comparable strategies when or if effective use cases are identified , smart contracts being pieces of code that are executed on a distributed ledger where for example, the transfer of funds can be dependent on specific conditions like the transfer of ownership of financial securities or the completion of a commercial trade.

Creating a trading plan is an important step in becoming a successful cryptocurrency trader. A trading plan can help you stay organized, stay on track, and make better decisions when trading cryptocurrencies. Here’s how you can create a trading plan for cryptocurrency trading:

1. Define your goals: Before you start trading, it’s important to have a clear idea of what you hope to achieve. Are you looking to make a quick profit, or are you more interested in long-term growth? Do you have a specific target in mind for your portfolio, or are you more focused on diversifying your investments?

2. Understand the market: Before you begin trading, it’s essential to have a good understanding of the crypto market. This includes keeping up with the latest news and developments, analyzing charts, and studying technical indicators.

3. Decide on your strategies: There are many different strategies you can use when trading cryptocurrencies, including day trading, swing trading, and long-term investing. You need to decide which strategies are best suited to your goals and the level of risk you’re comfortable with.

4. Set entry and exit points: Before you enter any trade, you need to have a clear idea of your entry and exit points. Your entry point is the price at which you will buy a cryptocurrency, and your exit point is the price at which you will sell. Make sure to also set your stop loss.

5. Diversify your portfolio: Diversifying your portfolio is an important part of risk management. This means spreading your investments across different cryptocurrencies, and not putting all your eggs in one basket.

6. Keep a trading journal: Keeping a trading journal can help you stay organized and track your progress. You can use your trading journal to record your trades, as well as any insights or lessons you’ve learned along the way.

7. Review and adjust your plan regularly: No plan is set in stone; market conditions change and you might need to adjust yours. Regularly review your plan and adjust it as needed.

By following these steps, you can create a trading plan that will help you navigate the crypto market with confidence and make better decisions. Remember to never invest more than you can afford to lose, and don’t get caught up in the hype, always have a well- thought-out plan to follow.

If you are looking for a reliable broker to start trading crypto with, consider NordFX. NordFX is an international broker with over 14 years of experience in financial markets. Since 2008, the company has been awarded more than 60 prestigious professional awards. The number of accounts opened in NordFX by clients from almost 190 countries has exceeded 1,700,000 as of today.

Elon Musk’s net worth took a pounding in 2022, spiraling downward from its lofty $340 billion record in November 2021, to $137 billion, according to Bloomberg Billionaires Index, which makes him the first person in history to lose $200 billion.

The significant drop in Musk’s fortune was as a result of the plunge of Tesla’s stock, which has fallen 65% since last year. With his fortune largely tied to Tesla’s shares, Musk has got into the Guinness World Records as the biggest loser of personal fortune in history.

Japanese tech investor Masayoshi Son, previously held the record with a whopping $58.6 billion loss in 2000.

With his current $137 billion fortune, Musk is ranked the second richest person in the world behind the founder of luxury goods conglomerate, Louis Vuitton Moët Hennessy (LVMH) Chairman Bernard Arnault, who is now the world’s richest man with estimated net worth of $175 billion.

However, it is expected that Musk will regain the first place at Billionaires Index this year, as soon as Tesla shares return to bull runs.

In February 2000, when Son’s net worth nosedived, it was a decline from a peak of $78 billion to $19.4 billion in July of the same year. His misfortune was attributed to Softbank’s ordeal, which was hit hard by the dot-com crash. The Japanese company’s situation deteriorated and Son’s net worth was reduced by as much as $5 billion in a single day.

However, Softbank later bounced back, recouping its losses and also making more. The conglomerate, which is now a notorious venture capitalist, has gone on to acquire many companies around the world, including British and American firms. Following its recovery, Son regained his wealth.

Many have made reference to this situation as Tesla’s value and Musk’s net worth take a beating. Tesla’s shares decline has been largely attributed to Musk’s focus on Twitter, his newly acquired social media company that he is working to transform. Musk has sold Tesla shares worth billions of dollars to fund his Twitter adventure; a development investor said it’s hurting the company.

Experts believe that Tesla stock will rise again as soon as Musk returns his full attention to the electric vehicle company. This also means that Musk will be back as the World’s richest man once again.

Musk, who is also the CEO of SpaceX, has attributed Tesla’s misfortune to current global economic headwinds. But he is also optimistic that the situation will change in the long term.

“Long-term fundamentals are extremely strong. Short-term market madness is unpredictable,” Musk wrote in a post on Twitter.

While Musk dropped to the second spot in the Billionaires’ Index, Tesla still holds its place as the world’s most valuable automaker. The EV company has more $100 billion on its market capitalization than Toyota, its closest rival.

Analysts say Tesla is “still one of the most transformational companies over the next decade.” The company last week slashed the cost of some of its car models in its Asian markets, a move that analysts believe will boost sales and accelerate its recovery.