It has been an unpleasant week as the news of CBN banning cryptocurrency began to escalates, people kept asking why CBN would do such a thing as this has been one of the major source of investment to many Nigerians.
Some has actually blamed the government especially the president “bubu” for this act, this might not be true though. so let’s look at the reason why CBN has decided to ban cryptocurrency in Nigeria.
CBN has explained in the press release on the 7th of February 2020 why they banned the use of cryptocurrency among banks and its citizens.
Just like every other Nigerian, we have waited for this press release since the ban and they have responded by providing further justifications about its position to the public.
Reasons for Banning Cryptocurrency
- Transacting in cryptocurrencies signifies risk of loss of investments, illicit fund flow, criminal activities, money laundering, terrorism financing etc. They also stated that this restrictions is not only in Nigeria but in several other countries like Canada, Morocco, Egypt, Bolivia, China and more
- Some of this Cryptos are issued by unregulated and unlicensed bodies
- Cryptocurrencies have been used to fund illegal activities such as terrorism, money laundering, Purchase of weapons and tax evasion
- The CBN stated that high amount of people use it for hazardous purposes rather payment
- CBN said that it will continue to educate its citizen about the dangers of cryptocurrencies
- CBN wants to prevent them from the high losses due to the high volatility of the investment
The CBN has made it clear that it has no comfort in cryptocurrencies. And will continue to educate the general public of the disadvantages of transacting in cryptos
Other Things to Note
- General circular has been issued by CBN prohibiting banks and other financial institutions from carrying out transactions in cryptocurrencies
- The general public didn’t take the ban well and since then have shown their disagreement using different medium
- Nigeria do not accept cryptocurrencies and other digital assets