Fighting for Cryptocurrency Property Rights! Nigerian People Sue Government

Nigerian cryptocurrency advocate James Otudor recently publicly declared his intention to challenge the government of Nigeria on cryptocurrency-related issues through legal action. "I, James Otudor, a Nigerian citizen, have filed a landmark lawsuit against the main government entity in Nigeria, challenging the restrictions on ownership, use, and trading of Bitcoin, USDT, and other cryptocurrencies," he announced on Twitter.

Defending the constitutional protection of property rights through litigation against the government

The lawsuit aims to protect cryptocurrency users in Nigeria from unfair treatment. "Bitcoin and USDT are globally recognized as valuable assets that can protect holders from currency inflation and serve as a medium of exchange," said Maurice Ebam, the legal representative of the plaintiffs. He stated that Article 43 of the Constitution guarantees every Nigerian citizen the right to acquire and own property within Nigeria, a right that extends to cryptocurrencies.

He mentioned that the lawsuit will target various government agencies in the country, including the President, Minister of Finance, Attorney General, Central Bank, Securities and Exchange Commission, and more. Maurice Ebam also pointed out that Article 14 of the African Charter on Human and Peoples' Rights protects people's property rights and can only be limited for public or social welfare needs. The plaintiffs believe that the continued attacks against Nigerians holding cryptocurrencies violate their fundamental rights, as Bitcoin and other cryptocurrencies serve as tools to protect savings from the impact of inflation and facilitate international transactions.

Naira depreciation: Cryptocurrency could be the country's lifeline

The background of the lawsuit stems from the increasing cryptocurrency regulations in Nigeria, such as OKX's announcement to exit the market, the Central Bank of Nigeria accusing Binance of manipulating exchange rates, and the legal actions against Binance resulting in its executives fleeing the country. According to reports, as of February 2024, 47% of cryptocurrency holders in Nigeria were holding cryptocurrencies. In comparison, Japan had only 6% of cryptocurrency holders, and the United States had 18%. Due to inadequate financial infrastructure in the country, people find it challenging to participate in international financial activities. The widespread adoption of cryptocurrencies in Nigeria is mainly driven by the severe depreciation of the national currency, the Naira (NGN), leading people to store assets in US dollars, stablecoins, or even Bitcoin.

Do third-world countries in need of cryptocurrency really not need DeFi?

James Otudor requested the court to immediately lift all restrictions on cryptocurrency trading platforms, allowing Nigerians to use them without limitations. He reiterated that infringing on the rights of holders of stablecoins, Bitcoin, and other cryptocurrencies is unconstitutional.

Reflecting on the article "Faith Tested? Ethereum Core Developer: I Often Wonder if I Chose the Wrong Industry", some argue that Péter Szilágyi should focus on those third-world countries in need of cryptocurrencies. The perception that cryptocurrencies are a casino arises because Western capital stories dominate the narrative, while the reality is that many people in financially unstable countries still require cryptocurrencies. Isn't Nigeria precisely in need of cryptocurrencies to mitigate the impact of inflation on people's purchasing power?

At that time, Péter Szilágyi replied, "If your economy relies on cryptocurrencies, do you really need those DeFi protocols?"

However, in the book "Factfulness: Ten Reasons We're Wrong About the World - and Why Things Are Better Than You Think" by global health expert Hans Rosling, it's mentioned that our view of the world should not be dichotomized into developing and developed countries. He suggests categorizing based on daily income into four levels: earning one dollar a day, barely affording basic necessities like food and lacking access to antibiotics.

Earning four dollars a day, affording food but needing to sell belongings in case of illness to buy medicine.

Earning sixteen dollars a day, being able to buy a refrigerator, and securing a good job for children after completing secondary education.

Lastly, earning thirty-two dollars a day, equivalent to the minimum wage as we know it. People in the fourth level find it challenging to imagine life in the previous three levels. The book also discusses the perspective from the top tier: those in the fourth level naturally see the world as split between the wealthy at the top and the poor below. However, looking down from the top, one cannot distinguish the differences in the lower levels, such as driving cars, riding motorcycles, bicycles, wearing sandals, or going barefoot.

Péter Szilágyi represents the perspective from the top tier. Taking Nigeria as an example, they indeed need cryptocurrencies to combat inflation. However, due to their inadequate financial infrastructure, they also require DeFi protocols to better engage in financial markets. In 2022, Nigeria had a GDP per capita of 2162 US dollars, translating to a daily income of about 6 US dollars, placing it in the second level as defined by Hans Rosling.