Despite the Central Bank o)f Nigeria’s (CBN) explanation on the reason for its directive to Deposit Money Banks (DMBs) and other financial institution to desist from dealing with cryptocurrencies, experts are of the view that effective regulation would have been an option.
Following the growth of cryptocurrency globally, they maintained that digitalization and proper profiling of people in that space is important in order to ensure that the environment is safe for investment purposes.
Speaking in a television programme , an Economist and Editor-In-Chief, at Stears Business, Tokunbo Afikuyomi, said because there is no digitalization, “that is why we see all of these illegal funds come in, digitalization is very critical.
According to him, the ban came as a shock to investors.
Chief Executive Officer, Inspiro Consulting, Jimi Tewe, said there should have been more official consultation for people to understand.
While maintaining that Cryptocurrency is fast growing globally, he said that should not give room for illegalities, adding that there is need for more understanding of that sector and then regulation.
“It came as a shock to people trading legally, looking at it from the academic point of view, we don’t have 200 to 300 million dollars coming in immediately as it were key stakeholders should engage the CBN
CBN had in a statement gave reason for its directive to Deposit Money Banks (DMBs) and other financial institutions to desist from transacting in and with entities dealing in cryptocurrencies, saying it felt the need to provide further justifications about its position to the general public.
According to the statement, “Cryptography is a method of encrypting and hiding codes that prevent oversight, accountability, and regulation. While there are a number of cryptocurrencies now in circulation, Bitcoin was the first to be introduced in 2009, and now accounts for about 68 per cent of all cryptocurrencies.
The apex bank, however, stated that its recent restriction is not new, but only a reminder of the earlier circular dated January 2017.
