Cryptocurrency: CBN Acted in Best Interest of Nigerians, Says Emefiele
CBN GOVERNOR
• Argues issues surrounding cryptocurrencies make them suitable for people involved in money laundering, terrorism financing
.
Central Bank Governor, Mr. Godwin Emefiele, Tuesday said it was in the best interest of Nigerians that the apex bank has placed restrictions on cryptocurrency transactions.
The apex bank had directed banks and other financial institutions to stop transactions involving cryptocurrencies.
The CBN Governor who briefed the joint Senate Committee on Banking, Insurance and Other Financial Institutions, ICT and Cybercrimes, and Capital Market on the directive said this was because the operations of cryptocurrencies were dangerous and opaque.
Emefiele argued that there was a difference between digital currencies issued by CBN and cryptocurrencies issued by unknown sources.
He also said that the biggest issues about cryptocurrencies were the anonymity, obscurity, and their concealment.
According to him, such issues around cryptocurrencies make them suitable for people involved in illegal activities, including money laundering, terrorism financing and other crimes.
He added that what the CBN has done with regards to the decision on cryptocurrency was to ensure legitimacy of money and safety of the financial system.
Emefiele cited instances of criminal activities investigated which were linked to cryptocurrencies.
He said, “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.”
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Nigerian Financial Intelligent Unit (NFIU) in their submissions in the joint meeting supported the CBN in its decision on cryptocurrencies.
The two agencies said cryptocurrency is a channel used to finance terrorism in Nigeria.
The Chairman of the Joint Senate Committee, and Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Uba Sani in his remark explained that the Committee was on a mission of fact-finding on the issue of cryptocurrency.
FOLLOW US
About Post Author
