Crypto is causing fiat to lose value?

[PX-Z]

Nope crypto isn't causing fiat devaluation. The value of fiat is losing due to various reasons and one of which is the corrupt politicians who hold leadership positions in a country.

Right, fiat have its own problem, governments are the one who are responsible why it got devalues overtime with so many reasons including importing, printing, international debts, etc. Crypto causing fiat to loose value is just so small percentage that it merely affect it or if it is. It only affect because of people using it to purchase goods nothing else.

[Trongduy]

Well, Nigeria is not the only country in the world where cryptocurrency is being used by citizens, so I don't think their is any other country that have come up with that kind of claim that cryptocurrency is the cause of the devaluation of their fiat currency. Although, every country has it law and discipline, if the Nigeria government actually believe that cryptocurrency or binance is the cause of the devaluation of their precious Naira, they have already ban NGN/USDT on binance, so let's see what happens again since what they see as the root cause have been eliminated for now.

I think this is just a political accusation rather than an official decision to apply in Nigeria. The spokesperson is the presidential advisor, not the president and maker of crypto laws in this country, so we probably don't need to care.

The purpose of this behavior may just be to divert responsibility for the rising inflation situation in this country, it makes the government immune from criticism by the people.

Other governments can absolutely learn to use crypto as a shield when blamed for the weakening of the domestic economy. Anyway, crypto has no one to argue or defend.

[Gyrgen]

Of course, no, you shouldn’t consider the statement of the president of such a country as something significant. I don’t want to offend Nigeria in any way, but in terms of a percentage of the world economy, it means nothing. And politicians are like that, the majority should speak in slogans because they can't do anything else.

[MrSpasybo]

Of course, no, you shouldn’t consider the statement of the president of such a country as something significant. I don’t want to offend Nigeria in any way, but in terms of a percentage of the world economy, it means nothing. And politicians are like that, the majority should speak in slogans because they can't do anything else.

As I understand it, they are accusing Binance of setting the USDT exchange rate with the national currency, causing the currency to depreciate. This sounds like a conspiracy theory that some force wants to attack Nigeria's finances with the help of Binance and other CEXs. It's really absurd, but I believe that many people still think it's true and are starting to blame crypto.

In fact, from a certain point of view, CEXs are the gateway for people to access USD more easily, through USDT, which causes the currency to depreciate. In my country, there is also a trend of people buying and storing USDT to avoid local fiat depreciation and also earning interest of about 10% per year from Binance or higher if adding LP on DEXs. However, the root cause of the currency depreciation is the weakening of the economy, and the government should act to revive the economy rather than blaming crypto.