The cryptocurrency sector has witnessed turbulent events recently, and the leading cryptocurrency Bitcoin (BTC) is now on the radar of many countries and central banks. This process has accelerated after countries like El Salvador officially accepted BTC as their legal tender, leading other countries and central banks to consider similar options. However, the Central Bank of Nigeria, which is moving in the opposite direction, faced a harsh blow.
Lawsuit Filed Against the Central Bank of Nigeria
The Central Bank of Nigeria has been accused of intentionally harming the country’s economy in a lawsuit filed by a Nigerian human rights activist group. The plaintiff emphasized that the central bank deliberately promoted the use of the US dollar for transactions within the country and represented the country’s devaluation as dollarization.
Femi Falana, a Nigerian lawyer, was the main person behind the lawsuit. Falana, who argues that the economy has been handed over to the dollar, emphasized in his application to the Lagos High Court that the central bank deliberately led the country to this situation.
Fiat Currency vs Bitcoin
Nigeria’s fiat currency has experienced significant depreciation in the past few months, and it has been observed that it has fallen far behind some leading currencies. Many Nigerian economists attribute this to a scarcity of US dollars. It is seen that this is one of the fundamental outcomes of the dollarization policy in Nigeria.
When we look at the current status of the Nigerian Naira, a sharp decline is clearly visible. Especially after June 10th and the dollarization decision, the price plummeted incredibly. It should also be noted that this graph represents the TRY exchange rate. NRN, which lost nearly 50% of its value in just one day, later remained stable, but a similar pattern was observed in previous years, with a period of horizontal movement followed by a sharp decline.
Cryptocurrencies, especially resilient assets like BTC, could be a solution to the problems faced by countries. When looking at the 10-year chart of BTC, its resistance against inflation is clearly evident. It is predicted that this leading cryptocurrency may attract the attention of other countries in this context.
