Cryptocurrency Has No Place in our Monetary System at This Time – CBN governor, Godwin Emefiele Tells Senate

on

The Central Bank of Nigeria is maintaining its stand on the ban on Cryptocurrency.

The governor of the apex bank, Godwin Emefiele, who appeared before the Senate Joint Committee on Banking, Insurance, and other financial institutions on Tuesday, February 23, said that money laundering, terrorism financing, and other criminal activities were being carried out using the digital currency.

University Of Abuja Students Beat Up Their Lecturer For Reportedly Collecting Answer Scripts Too Early (Video)

Describing the operations of cryptocurrencies as dangerous and opaque, the CBN Governor said the use of cryptocurrency contravened an existing law. He said given the fact that cryptocurrencies were issued by unregulated and unlicensed entities made it contrary to the mandate of the Bank, as enshrined in the CBN Act (2007) declaring the Bank as the issuer of legal tender in Nigeria.

Emefiele, who also differentiated between digital currencies, which Central Banks can issue and cryptocurrencies issued by unknown and unregulated entities, stressed that the anonymity, obscurity and concealment of cryptocurrencies made it suitable for those who indulge in illegal activities such as money laundering, terrorism financing, purchase of small arms and light weapons and tax evasion.

Lady Whose Fiancé Collected Wig, Engagement Ring He Gave Her over Alleged Infidelity Begs Nigerians not to Make Her more Depressed (Video)

Citing instances of investigated criminal activities that had been linked to cryptocurrencies, the CBN governor declared that “Cryptocurrency is not legitimate money” because it is not created or backed by any Central Bank.

“Cryptocurrency has no place in our monetary system at this time and cryptocurrency transactions should not be carried out through the Nigerian banking system” he stressed

The ban on cryptocurrency transactions was also backed by the Securities and Exchange Commission SEC, the Nigeria Financial Intelligence Unit NFIU as well as the Independent Corrupt Practices Commission ICPC.

The CBN had on February 5, directed banks to close accounts of persons or entities involved in cryptocurrency transactions within their systems.

Contact Us Now

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s