Cryptocurrency is a digital currency that can be used to buy goods and services but uses an online ledger with strong cryptography to secure online transactions. 

Meanwhile, the development is happening amid the Central Bank of Nigeria (CBN)'s directive that all banks in the country should close accounts of persons or entities involved in cryptocurrency transactions within their systems.

This was contained in a circular issued on Friday, February 5, distributed to deposit money banks (DMBs), non-bank financial institutions (NBFIs), and other financial institutions (OFIs).

The apex bank told the regulated institutions that dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited.

The CBN's decision to ban the cryptocurrency-related accounts in all financial institutions across the country has been trailed by a whirlpool of reactions as Nigerians on social media continue to question the logic behind the development.

Some Nigerians described the move as a deliberate attempt to kill innovation and self-employment, and close the gate to the reality of a digitally-evolving world. 

Following the backlash from Nigerians, the CBN has highlighted some reasons why the ban on cryptocurrencies will not be reversed.

The central bank gave a detailed explanation on why it ordered deposit money banks to desist from transacting in cryptocurrencies.

Among other justifications, the CBN said transacting in cryptocurrencies portend a significant risk of loss of investments.