CBN: Emefiele Tells Senate ‘No Going Back On Cryptocurrencyy Ban’

By Fola James

Central Bank Governor, Godwin Emefiele says there is no going back on cryptocurrency ban in the country, despite the outrage that trailed the apex bank’s action on the issue.

On February 5, the government bank directed commercial banks and other financial institutions, DMBs to freeze customers’ accounts dealing in cryptocurrency.

The CBN said it took the action to protect national security from terrorists and money launderers.

Other countries “have all made similar pronouncements based on the significant risks that transacting in cryptocurrencies portend-risk of loss of investments, money laundering, terrorism financing, illicit fund flows, and criminal activities. China, Canada, Taiwan, Indonesia, Algeria, Egypt, Morocco, Bolivia, Kyrgyzstan, Ecuador, Saudi Arabia, Jordan, Iran, Bangladesh, Nepal, and Cambodia have all placed a certain level of restrictions,” the apex bank said.

The magazine had reported that top bankers such as Kingsley Moghalu, a former CBN Deputy Governor and Senator Tokunbo Abiru, a former managing director of Polaris Bank criticized the action on the strength that many Nigerians depend on cryptocurrency to earn a living.

But Emefiele told the Nigerian Senate, on Tuesday, that it took the action in the best interest of the nation, noting that cryptocurrency contravened the 2017 CBN Act.

He reiterated his earlier statement that cryptocurrency promotes criminality such as money laundering, terrorism financing, purchase of small arms and light weapons and tax evasion.

He explained that the safety and security of the country is of paramount interest to the apex bank as enshrined in the CBN mandate.

“Cryptocurrency is not legitimate money .Cryptocurrency has no place in our monetary system at this time and cryptocurrency transactions should not be carried out through the Nigerian banking system.”

He said the issue of cryptocurrency should be treated with caution that it deserved, adding that the Bank would continue its surveillance and deeper understanding of the digital space, noting that the apex bank would to do all within its regulatory powers to protect the country’s financial system from the activities of currency speculators, money launderers, and international fraudsters.