Steve Hanke, a professor of applied economics at Johns Hopkins University, has attributed Nigeria’s economic instability to the policies implemented by the Central Bank of Nigeria (CBN), including significant increases in the country’s money supply. Contrary to some perspectives, Hanke insists that cryptocurrency is not responsible for Nigeria’s economic challenges.
“With the naira PLUNGING & inflation SURGING, NGA has hit the PANIC BUTTON – recently forcing Binance to halt its operations,” said Hanke, according to X. “Crypto speculation is NOT the source of NGA’s problems.”
According to Johns Hopkins University’s website, Hanke is the founder and co-director of its Institute for Applied Economics, Global Health, and the Study of Business Enterprise. He also holds senior fellow positions at both the Cato Institute and the Independent Institute. His previous roles include serving as a senior economist on President Reagan’s Council of Economic Advisers and as a senior adviser to the Joint Economic Committee of the U.S. Congress.
The Wall Street Journal reported that Nigerians grappling with soaring inflation and a devalued currency have increasingly turned to cryptocurrency as a means to safeguard their savings. However, in February, access to several crypto platforms was restricted by the Nigerian government. This included Binance, recognised as the world’s largest crypto exchange. Following this action, two Binance executives were detained during their visit to meet with government officials in Nigeria. These executives – American citizen Tigran Gambaryan and Nadeem Anjarwalla who holds UK and Kenyan nationality – remain in detention without any formal charges against them. They are reportedly being held under guard with limited access to their phones. Gambaryan’s wife has stated that she has been able to maintain minimal communication with her husband.
Binance’s website indicates that Gambaryan joined their team in 2021 as vice president of Global Intelligence and Investigations. Prior to this role, he spent ten years serving as a special agent for the Internal Revenue Service—Criminal Investigation (IRS-CI) Cyber Crimes Unit based in Washington D.C., where he led several multi-billion dollar cyber investigations.
While details regarding the detention of these two executives have not been openly discussed by the Nigerian government, Bayo Onanuga, an adviser to the Nigerian president, told the Wall Street Journal that Binance has been cooperating with government officials. Discussions regarding “compensation” to Nigeria have reportedly taken place. A spokesperson for Binance stated, “We are working collaboratively with Nigerian authorities to bring Nadeem and Tigran back home safely to their families. We trust there will be a swift resolution to this matter.”
Economist Shedrach Israel expressed his belief that banning Binance will not resolve the issue of Nigeria’s currency devaluation, as reported by Punch. Israel stated, “I don’t know why the cryptocurrency is being seen as sabotage on the exchange rate because the cryptocurrency is not the major means by which the dollar is flowing in Nigeria.” It is estimated that 10.3% of Nigeria’s population, equating to over 22 million people, currently hold crypto.
