‘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 choice 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 most effective curiosity of Nigerians.

In keeping with a report by media outlet Punch, whereas addressing the Senate committee, Emefiele remarked:

“Cryptocurrency will not be professional cash. Cryptocurrency has no place in our financial system presently and cryptocurrency transactions shouldn’t be carried out via the Nigerian banking system.”

The CBN governor additionally reiterated that regardless of the ban, the central financial institution was doing its due diligence to raised 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 companies to a listening to on the way in which ahead for crypto rules.

Different taking part regulatory chiefs within the listening to additionally echoed the CBN’s damaging stance, with Bolaji Owasanoye, chairman of the Unbiased 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 trade is dotted with strong forensic capabilities underneath the aegis of blockchain intelligence companies like CipherTrace and Chainalysis.

Certainly, these organizations have aided legislation enforcement companies in lots of international locations to apprehend legal syndicates concerned in crimes like drug trafficking and baby pornography.

In keeping with its 2020 crime report, Chainalysis revealed that solely 0.34% of all crypto transactions for the complete 12 months have 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 Change Fee. In keeping with 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 govt, acknowledged that the fee was working with different related companies 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 obtained 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%.