It is typical China-style: fast, bold and big. The manufacturing capital of the world has banned “financial institutions and payment companies from providing services related to cryptocurrency transactions”. That is the only factual statement in that press release from the Communist Party. The other components are not true because China is not a passive party. 

Yes, for the rise of e-yuan, a digital version of China’s currency, Bitcoin, Ether and other cryptocurrencies must make way. You may not blame them because in this world, there is fraternity when you are not rising but when you begin to rise, problems emerge. China will never trust the BTC ledger, decentralized or otherwise, and that is why the transition to e-yuan has started. For a nation which is admired and hated, depending on your GIS location, it understands the risks , and wants to manage them: move China away from Western cryptocurrency!

China has banned financial institutions and payment companies from providing services related to cryptocurrency transactions, and warned investors against speculative crypto trading.

Under the ban, such institutions, including banks and online payments channels, must not offer clients any service involving cryptocurrency, such as registration, trading, clearing and settlement, three industry bodies said in a joint statement on Tuesday.

“Recently, crypto currency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people’s property and disrupting the normal economic and financial order,” they said in the statement.

In the next coming weeks, I expect China to open online applications for vendors and agents for e-yuan. Magically, all these banned entities will qualify to move e-yuans around the world. China does not score own-goals; it knows where it is going!

Bloomberg reported that the Biden administration is stepping up scrutiny of China’s plans for a digital yuan, with some officials concerned the move could kick off a long-term bid to topple the dollar as the world’s dominant reserve currency, according to people familiar with the matter.

Recently, China has increased efforts on many fronts to put the digital yuan in circulation as soon as possible.

Now that China’s digital-currency efforts are gathering momentum, officials at the Treasury, State Department, Pentagon and National Security Council are bolstering their efforts to understand the potential implications, the people with the knowledge said.

Never use this ban to justify Nigeria’s which is a pure siddon-look ban.

So another $6.1 billion loan and of course the Senate, under Ahmed Lawan, is expected approve; Nigeria has limited options. On Tuesday, President Muhammadu Buhari asked the Senate to approve a new external loan of $6.1 billion for the Federal Government to finance the 2021 budget deficit.

When we wrote here that Nigeria would need a loan to finance the 2021 national budget, many threw digital bombs. My thesis was clear: if the government is unable to mop unclaimed dividends and balances on dormant bank accounts, the only remaining option is to call the lenders. Why? There is no other option because the pension funds are not even there anymore.  Like I noted this morning to the Manufacturers Association of Nigeria (MAN), expecting the government to help you is an illusion because it is the government which needs help!

What is happening in Kaduna is a microcosm of Nigeria: about 100k workers consume 96% of FAAC allocation to the state with the other 8.9 million citizens relying on 4%. While the governor has chosen to fire people (not optimal) instead of pushing for productivity indexable public service which is tied to internal GDP growth, Nigeria has a date ahead.

The prediction is clear: by 2023 December, more than 70% of Nigeria’s budget could go into serving debts! Do not think that it is impossible when you see that our borrowing is NOT  for production but largely for consumption and recurrent expenditure.

The president, in a letter to both chambers of the National Assembly on Tuesday, asked for their approval to take the fresh loan.

The Deputy Speaker of the House of Representatives, Idris Wase, read the letter from the president during the plenary.

The President of the Senate, Ahmad Lawan, read the letter during the plenary session of the upper legislative chamber on Tuesday.

Loans. Loans. More requests on the way! A nation of loans. Expect this communique to become more vocal.

I am happy to announce that Tekedia Mini-MBA has introduced a new course – “Due Diligence and Business Intelligence  – The Art and Strategy for Deal Success”. Barrister Chike Obimma, a Partner at NICCOM LLP (Commercial Law Firm), has developed the course. He led a Tekedia Live in Edition 4, and after the session, our internal tracking data showed massive interests on understanding and mastering business deals and transactions.

Tekedia Mini-MBA edition 5 (June 7 – Sept 1, 2021) curriculum has been updated accordingly. Check the updated curriculum here.

Tekedia Institute offers an innovation management 12-week program, optimized for business execution and growth, with digital operational overlay. It runs 100% online. The theme is Innovation, Growth & Digital Execution – Techniques for Building Category-King Companies. All contents are self-paced, recorded and archived which means participants do not have to be at any scheduled time to consume contents.

It is a sector- and firm-agnostic management program comprising videos, flash cases, challenge assignments, labs, written materials, webinars, etc by a global faculty coordinated by Prof Ndubuisi Ekekwe.