The governor of the Central Bank Of Nigeria (CBN), Godwin Emefiele has spoken up about the current ban of cryptocurrency in the country.
Godwin Emefiele, who appeared before the Senate Joint Committee on Banking, Insurance, and other financial institutions on Tuesday, February 23, said that money laundering, terrorism financing, and other criminal activities were being carried out using cryptocurrency.
Describing the operations of cryptocurrencies as dangerous and opaque, the CBN Governor said the use of cryptocurrency contravened an existing law.
Emefiele, who also differentiated between digital currencies, which Central Banks can issue and cryptocurrencies issued by unknown and unregulated entities, stressed that the anonymity, obscurity and concealment of cryptocurrencies made it suitable for those who indulge in illegal activities such as money laundering, terrorism financing, purchase of small arms and light weapons and tax evasion.
CBN Governor said: “Cryptocurrency has no place in our monetary system at this time and cryptocurrency transactions should not be carried out through the Nigerian banking system”
The ban on cryptocurrency transactions was also backed by the Securities and Exchange Commission SEC, the Nigeria Financial Intelligence Unit NFIU as well as the Independent Corrupt Practices Commission ICPC.