Our commercial and microfinance banks are subject to decisions made by the CBN and the CBN in like manner follow the rule established by the president. Before cryptocurrencies can be considered as an asset for loan, it should be recognized as a legal tender and the regulatory framework eased. It will take a digital president who understands the revolution going on around the world to come up with a stand on the laws governing crypto currency in Nigeria.
We could recall in 2021 banks were banned from facilitating crypto transactions (CBN’s) directives. Even though the ban has eased, some banks still avoid crypto related transfers to stay on the safe side of unclear laws.
I think we are mistaken things here, bitcoin been a legal in a country is different from been a legal tender, legal tender means that it must be accepted like the fiat currency but been legal means the business have the right to take it as payment method or not, this is the same concept that the US uses, bitcoin is legal in the country including other cryptocurrencies but not a legal tender as the dollar is the official legal tender, aside US there are many countries where crypto is legal but not a legal tender.
So the only thing is bitcoin needs to be stated as been legal and then loan companies can decide whether to accept it as a mortgage. I think it is possible in Nigeria but first the government stands on this need to be known first.
But wait a moment!
Why would someone go take loan from bank and want to present their digital currency to Bank?
Well, I see no sense of having Bitcoin and you want to hold it back and borrow money, why not just convert few sat and do your things thank having to go through stress to loan money in the bank, besides Nigeria bank like I know can never accept Bitcoin as a collateral for someone to borrow money from bank after knowing how volatile the crypto currency market be. Do you also realize that any amount you are loan from bank are generally people funds that was stored in the bank, when the needs arises they go make use of the money than just giving out huge some of money and expect bank to have a volatile asset as their collateral this won't be possible.
If you’re a business man you will understand this better, there are some asset you wouldn’t want to dilute because you need money and there for you go into Loan with anticipation of extra funds coming to pay off the loan. For example now, a campaign participant member on this forum now might be holding bitcoin and would be in need of money to buy a house/land say $1000, instead of actually taking that off from his bitcoin holdings he believes money he gets from his weekly campaign on the forum can be used to pay that up he will simply mortgage the bitcoin by taking loan and then gather the money using his campaign payments and if completed gets his assets back without down sizing his assets