NNPC report

CBN Explains Ban On Crypto-currency

CBN Explains Ban Cyrptocurrencie


The Central Bank of Nigeria, CBN, has again  issued a statement inreaction to  its ban on  transactions in cryptocurrencies, explaining that its necessary to protect the financial system and Nigerians from the risks associated with crypto assets transactions.

The apex bank statement by its Ag. Director, Corporate Communications,    Osita Nwanisob  said that these risks which have escalated in recent times, with dire consequences for the integrity of the financial system and financial stability include risk of loss of investments, money laundering, terrorism financing, illicit fund flows and other criminal activities.

Nwanisobi in the statement, insisted that several countries of the world have also placed certain level of restrictions on financial institutions facilitating cryptocurrency transactions. The CBN sa, he maintained will continue to do all within its regulatory powers to inform Nigerians to desist from its use and protect the nation’s financial system from activities of fraudsters and speculators.

He cited some of the countries that are already desisting from dealing in cryptocurrencies as China, Canada, Taiwan, Indonesia, Algeria, Egypt, Morocco and Saudi Arabia, noting that the policy upon which the current directive was based dates back to January 12, 2017.

He went further to state the extent China had gone to outlaw transactions in cryptocurrency. He said the central bank of China known as the Peoples Bank of China (PBoC), views it as illegal with no legal status to make them equivalent to money.

Among those that regard it as a pariah are the famed investor, Warren Buffett and the Governor of the Bank of England, Andrew Bailey. Buffett called it “rat poison squared,” a “mirage” and a “gambling device”; Bailey said its extreme price volatility is one of the biggest flaws, which makes it impossible for them to be used as a lasting means of payment.