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You could certainly use it, but it would cause issues. Benjamin is a very common name with very common nicknames. James is a very common name with very common nicknames. When you try to take one fairly common nickname for a common name and use it for another common name with common nicknames (follow that? :P)-- mass confusion for people. People will ask if his name is James, and when you say no, it's Benjamin, they'll wonder why he's not called Ben.

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But I'm also bias because I was initially taken aback at the idea of using a nn that I love for James and would use in real life as a nn for my son's name.