‘Cryptocurrency is not legitimate money,’ says Nigeria’s central bank governor

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Godwin Emefiele, governor of the Central Financial institution of Nigeria, has defended the apex financial institution’s resolution to ban banks from servicing cryptocurrency exchanges within the nation.

Showing earlier than a joint Senate Committee on Banking, Insurance coverage and Different Monetary Establishments; ICT and Cybercrime; and Capital Market, Emefiele remarked that the CBN ban was in the very best curiosity of Nigerians.

Based on a report by media outlet Punch, whereas addressing the Senate committee, Emefiele remarked:

“Cryptocurrency isn’t respectable cash. Cryptocurrency has no place in our financial system right now and cryptocurrency transactions shouldn’t be carried out by means of the Nigerian banking system.”

The CBN governor additionally reiterated that regardless of the ban, the central financial institution was doing its due diligence to higher underneath the rising digital asset area.

As beforehand reported by Cointelegraph, the Nigerian Senate had summoned the CBN governor together with different heads of federal regulatory businesses to a listening to on the best way ahead for crypto laws.

Different taking part regulatory chiefs within the listening to additionally echoed the CBN’s unfavourable stance, with Bolaji Owasanoye, chairman of the Impartial Corrupt Practices and Different Associated Offences Fee, linking cryptocurrencies to the actions of terrorist and kidnappers.

Owasanoye echoed the well-worn, inaccurate rhetoric that crypto transactions are opaque in nature. Nevertheless, the business is dotted with sturdy forensic capabilities underneath the aegis of blockchain intelligence companies like CipherTrace and Chainalysis.

Certainly, these organizations have aided regulation enforcement businesses in lots of international locations to apprehend felony syndicates concerned in crimes like drug trafficking and youngster pornography.

Based on its 2020 crime report, Chainalysis revealed that solely 0.34% of all crypto transactions for your complete 12 months had been involved in criminal activities. In the meantime, a September 2020 report by the United Nations Division of Financial and Social Affairs estimated that cash laundering in mainstream finance amounted to 2.7% of the worldwide gross home product.

Additionally showing earlier than the Senate committee was Lamido Yuguda, director-general of Nigeria’s Securities and Alternate Fee. Based on Yuguda, the SEC has determined to pause its planned regulatory framework for digital belongings following the CBN ban.

Earlier in February, the SEC had declared that the crypto market was too big to ignore. On the time, Timi Agama, an SEC government, acknowledged that the fee was working with different related businesses to create a authorized framework for digital belongings in Nigeria.

Senator Uba Sani of the Kaduna Central Senatorial District, who heads the committee, promised that the panel would work to accommodate all of the steering acquired from related stakeholders with none preconceived suggestions.

For the reason that CBN ban, the Bitcoin (BTC) value premium in Nigeria has steadily increased. As of the time of writing, this premium has risen to greater than 67%.