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Africa Business News of Thursday, 25 February 2021


Outrage as Central Bank of Nigeria says cryptocurrency is activities of players from 'dark world'

Reactions in manifolds have continued to trail the Central Bank of Nigeria's (CBN)'s justification for banning cryptocurrency as Nigerians take to social media to take a swipe at the apex financial institution and question the logic behind the embargo.

It would be recalled that in a letter addressed to all Deposit Money Banks (DMBs), Non-Bank Financial Institutions (NBFIs) and other institutions, the CBN said it has placed a ban on all transactions on cryptocurrency.

The controversy-courting decision, which caught Nigerians unaware, was announced in a letter on Friday, February 5.

Cryptocurrency is a digital currency that can be used to buy goods and services but uses an online ledger with strong cryptography to secure online transactions.

On Wednesday, February 24, CBN governor Godwin Emefiele clarified the recent decision of the apex bank concerning cryptocurrency, saying the institution acted in the best interest of Nigerians.

The CBN chief made the comment on Tuesday, February 23, when he appeared before a joint Senate committee that summoned him over the directive, arguing that cryptocurrency is not a legal tender in most nations of the world as it is not regulated by any Central Bank.

“Cryptocurrency is used to describe the activities of players in an electronic dark world,” the CBN governor posited.

Here are some of the reactions:

Morris Monye said: "I don't think the CBN Governor fully understands the concept of money. But hey, he can do no wrong. He is the CBN Governor."

A Twitter user Aqualady reacted: "This is what our CBN Governor has to say about Cryptocurrency, are we really moving forward or backward Nigeria?"

A social media influencer, Dekunle, said: "CBN Governor banned crypto transactions with Nigerian banks because money created out of thin air and the idea of DECENTRALIZATION doesn’t sit right with him, this country is a badly written joke."

Sammy, a social media user also reacted: "Former CEO of Zenith Bank and current CBN Governor, Godwin Emefiele needs to read from a handout to explain cryptocurrency for Nigerians? No wonder the economic policies are based on trial & error with a touch of Insha'Allah."

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