The Governor of the Central Bank of Nigeria, Godwin Emefiele has not too long ago defended the apex financial institution’s determination in excluding cryptocurrencies from Nigeria’s monetary ecosystem.
Appearing earlier than a joint Senate Committee on Banking, Insurance and Other Financial Institutions; ICT and Cybercrime, Godwin Emefiele said that the Crypto ban was in the very best curiosity of Nigerians.
According to a report by a web-based media outlet, whereas addressing the Senate committee, Godwin Emefiele remarked,
“Cryptocurrency is not legitimate money. Cryptocurrency has no place in our monetary system at this time and cryptocurrency transactions should not be carried out through the Nigerian banking system.”
“Cryptocurrency is used to describe the activities of players in an electronic dark world” – CBN Governor. pic.twitter.com/2VQuY3HbX7
— YabaLeftOnline Media (@yabaleftonline) February 25, 2021
The head of the apex financial institution affirmed Nigeria’s central financial institution resolve in persevering with its surveillance and deeper understanding of the crypto ecosystem, buttressing that its main goal stays to teach Africa’s largest economic system on rising monetary dangers and shield Nigeria’s monetary system from the actions of cash launderers, foreign money speculators, and foreign-based fraudsters.
Recall in a press launch dated, the 7th of Feberuary 2021, the CBN had defined intimately the motives for its directive to Deposit Money Banks (DMBs) and different monetary establishments to desist from transacting in and with entities dealing in cryptocurrencies.
“Due to the fact that cryptocurrencies are largely speculative, anonymous, and untraceable, they are increasingly being used for money laundering, terrorism financing, and other criminal activities. Small retail and unsophisticated investors also face a high probability of loss due to the high volatility of the investments in recent times.
“In light of these realities and analyses, the CBN has no comfort in cryptocurrencies at this time and will continue to do all within its regulatory powers to educate Nigerians to desist from their use and protect our financial system from the activities of fraudsters,” the CBN said.
What it is best to know: The CBN, some weeks in the past issued a round prohibiting banks and different monetary establishments from finishing up transactions in cryptocurrencies or facilitating funds for crypto exchanges.
- The CBN’s directive has since gotten very harsh reactions on social media with many condemning the coverage as a deliberate try by the federal government to impoverish younger Nigerians who’ve been in a position to create wealth for themselves via crypto buying and selling.
- Interestingly, Nigeria together with different international locations ranked because the worst international locations to start out a profession don’t wholly settle for or legally acknowledge cryptocurrency and different digital belongings.