The Governor of Central of Nigeria, Godwin Emefiele, has defended the ban on cryptocurrencies in the country.
Briefing the Senate’s joint committee on banking insurance and other financial institutions (including ICT and cybercrime) on Tuesday, Emefiele noted that cryptocurrencies facilitate internet fraud, terrorism and cybercrime.
According to him, all regulators in the world do not recognise crypto because of its dark electronic operating system.
Recall that the CBN governor was invited sequel to a motion by a federal lawmaker Senator Istifanus Gyang during plenary on February 11 on the CBN’s directive to stop financial institutions from transactions in cryptocurrencies and matters arising from them.
The CBN had on February 5 ordered all banks to close accounts of anyone who transacts in cryptocurrency.
The order was contained in a circular to banks and other financial institutions signed by the director of banking supervision, Bello Hassan.
The CBN had said the use of cryptocurrencies in Nigeria contravenes existing laws.
The apex bank warned deposit money banks (DMBs) to desist from transacting cryptocurrencies and dealing with entities who do the same.
According to the CBN, cryptocurrencies are “issued by unknown and unregulated entities” and are increasingly being used to conduct ”many illegal activities including money laundering, terrorism financing, purchase of small arms and light weapons, and tax evasion.”
