Can Activity on Crypto Exchanges affect a Country's Currency?

[Etini]

In my country, most major crypto exchanges are inaccessible as a directive of the company to telecommunication companies. That's because the government has stated that the activities on these crypto exchanges is affecting the value of the local currency negatively.

I have been wondering how this works. People on their own who have no issue with monetary has their activities selling crypto affect the value of a country's currency.

As it stands now, Binance and other major crypto exchanges can't be accessed from the internet space of my country except with the use of a VPN.

Is it possible that activities on crypto exchanges can affect the value of a country's currency?

 

[niche]

I feel that the exchange rate can be linked to crypto prices and regulation. After the government banned /blocked foreign exchanges in the country, the exchange rate against the dollar has improved, since the local crypto traders are forced to use the local currency for trading. They have also transferred their crypto to the local exchanges, or exited cryptocurrency.

 

[ZacSc]

In my country, most major crypto exchanges are inaccessible as a directive of the company to telecommunication companies. That's because the government has stated that the activities on these crypto exchanges is affecting the value of the local currency negatively.

I have been wondering how this works. People on their own who have no issue with monetary has their activities selling crypto affect the value of a country's currency.

As it stands now, Binance and other major crypto exchanges can't be accessed from the internet space of my country except with the use of a VPN.

Is it possible that activities on crypto exchanges can affect the value of a country's currency?

I assume the government has prohibited cryptocurrency exchanges in your country for some other reason. And they came up with an explanation for it for the public. Don't look for the truth in their explanation. It's the government

 

[Suba]

In my opinion, cryptocurrency can actually increase a person's income or encourage a country's economic growth, and every crypto transaction is carried out on a crypto exchange, be it local or global exchanges. On local exchanges, crypto transactions do not have much influence on money circulation, because the amount of money or money supply in a country does not decrease. but if transactions are carried out on global exchanges it will have a big impact on money circulation. You can imagine if at least 10% of the money circulation in your country moves to crypto which is exchanged in USD then of course the money circulation system will be disrupted or a cash shortage crisis will arise.

 

[btaliat]

Crypto can affect a country's economy but not a country's currency. For instance, a country that has its majority of its members as crypto traders, there is tendency that they may not contribute massively to the production sector of such a country, hereby reducing the growth of the country's economy.

Unfortunately, I don't see where a country's economy can be affected with the activities of the crypto trades. There is no correlation at all. Banning crypto activities base in that premise is not tenable for me. And I don't think it has any economical back up to eschew the claim.

 

[frankmeckel]

In my country, most major crypto exchanges are inaccessible as a directive of the company to telecommunication companies. That's because the government has stated that the activities on these crypto exchanges is affecting the value of the local currency negatively.

I have been wondering how this works. People on their own who have no issue with monetary has their activities selling crypto affect the value of a country's currency.

As it stands now, Binance and other major crypto exchanges can't be accessed from the internet space of my country except with the use of a VPN.

Is it possible that activities on crypto exchanges can affect the value of a country's currency?

Yes, I agree with the CBN on this narrative, money coming into the platform it's not regulated, taxes are not paid, people buy dollar and naira on these platform without any regulations or pegged price and making it easy to manipulate naira