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.
You hit the nail on the head. Bitcoin being a legal tender means that individuals and businesses are under law to accept it as a legal tender. You can sue a business or individual for refusing to accept Bitcoin. When we say Bitcoin is legal, it means that it is a recognised currency. People can decide to reject it as a means of payment because it is not legal tender. An example is SOMEONE in Nigeria can reject the dollars for payment but can be sanctioned for refusing the Naira.
Bitcoin is legal in Nigeria and can be used as collateral for loans. Individuals or businesses can decide to have an agreement in which Bitcoin is used as an asset to access loans or credit facilities. Such an agreement can be recognised by Nigerian law. But banks or other financial institutions can not offer such credit services using cryptocurrencies as collateral until existing laws are reviewed.