Home Banking, Finance & Investment CBN Governor says cryptocurrency threatens the safety of Nigeria’s financial system.

CBN Governor says cryptocurrency threatens the safety of Nigeria’s financial system.

by Blessing Ubani
CBN licenses 10 more money transfer operators

Following the announcement of the Central Bank of Nigeria prohibiting the banking sector from servicing crypto exchanges.

The testimony of the governor of the Central Bank of Nigeria justifies the action of the apex bank on the ban of cryptocurrency in Nigeria. 

In Emefiele’s testimony before the Nigerian Senate, he said that the directive on the crypto ban is for the safety of Nigerians and their financial system. Also, its decision is geared towards protecting the uninformed adults who are unaware of the dangers of trading in cryptocurrency. 

He further told the Nigerian legislators that “cryptocurrency is not legitimate money” since it is not issued by any central bank. It is used to facilitate crime, money laundering and financing terrorism.

As expected, the CBN governor said that investigations are ongoing to identify those who are still financing crypto exchanges outside the CBN sanctioned channels 

Meanwhile, the Director-General of the Nigerian Securities and Exchange Commission (SEC) Lamido Yuguda, dismisses the hearsay that there have been policy contradictions between the two regulators.

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