CBN: Nigerians are free to use bitcoin, others -Todayng

CBN: Nigerians are free to use bitcoin, others -Todayng
Nigerians are free to use Bitcoin

Nigerians are free to use Bitcoin

The Governor of the central bank of Nigeria has indirectly said that Nigerians are free to use bitcoin , and other cryptocurrencies.

Godwin Emefiele, governor of Nigeria’s central bank which previously banned banks from servicing crypto exchanges, has reportedly clarified the bank’s position on the use of cryptocurrencies in the country.

The Governor of the bank, Godwin Emefiele, disclosed this in Abuja at the 30th seminar for Finance Correspondents and Business Editors organised by the bank.

According to the online news outlet, TodayNg, Emefiele, who was represented by Adamu Lamtek, Deputy Governor, Corporates Services, said what the bank did was to protect the banking sector from the activities of Cryptocurrencies and not a ban on its activities.

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Cryptocurrency Regulations in Banking Sector

The CBN did not place restrictions from use of Cryptocurrencies and we are not discouraging people from trading in it. What we have just done was to prohibit transactions on Cryptocurrencies in the banking sector.

The statement follows the CBN announcing last month in a circular that it had placed a ban on regulated financial institutions from providing services to crypto exchanges in the country. The ban directed all commercial banks to close accounts belonging to crypto exchanges and other businesses transacting in cryptocurrencies in Nigeria, warning of “severe regulatory sanctions” for any institution in breach of the rule. Some account holders at Nigeria’s Access Bank have already got their accounts closed.

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Emefiele previously referred to cryptocurrencies  as “not legitimate money” with no place in Nigeria’s monetary system. The governor said at the time the central bank was doing its due diligence to better understand the implications of the emerging space.

However, many regulators and crypto enthusiasts in Nigeria have criticized the ban. Some lawmakers in the Nigerian Senate have proposed inviting the CBN governor and major crypto stakeholders to a hearing to discuss issues related to crypto regulations in the country.

Since the CBN introduced the crypto ban, the price of Bitcoin (BTC) has been trading at a premium in the country. Valued at $57,349 in the United States, data from crypto exchange Luno currently shows BTC has risen to a more than 70% premium in Nigeria at a price of $97,509.

Also Read: CBN: Nigerians are free to use bitcoin, others

Oladipo Olutunde

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