Nigeria Central Bank Explains Why Cryptocurrency Ban

Last updated on July 31st, 2022 at 07:33 am

According to the BBC, the Central Bank of Nigeria on Friday stopped banks and financial institutions from dealing with Crypto currency transactions or facilitating the exchange of Crypto currency. The government has said it is not possible for a single financial provider [Providus bank] to disrupt public payment services and get a new CBN order immediately. The decision by the Central Bank of Nigeria [CBN], is based on a warning from the US Federal Bureau of Investigation (FBI), regarding the activities of fraudsters who use crypto currencies to bring in hundreds of millions of dollars illegally taking in the USA and other parts of western Nigeria.

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The Central Bank of Nigeria (CBN) has explained why it has banned crypto currency transactions in the country, arguing that digital currency is being used for laundering and terrorism and is a threat to national security. The manager said this in a statement issued Sunday that bans digital Crypto currency, days after he confirmed a 2017 order by financial institutions to regulate crypto currency accounts.

The decision has sparked outrage from many young people in one of the world’s second-largest countries that use tourism funds such as Bitcoins. This is having an economic impact on the thousands of young people who work in these crypto currencies. A statement issued by OsitaNwanisobi, Acting Director, Corporate Communications, said the ban on such transactions would not have a negative impact on fintechs and other financial institutions.

“The use of crypto currencies in Nigeria is a direct violation of the law,” MrNwanisobi said in a statement, according to the Daily Trust. “It is also important to point out that there is a critical difference between the Central Bank of Digital Currency issued and crypto currencies. As the names suggest, the Central Bank can issue Digital Currency. “Crypto currencies are produced by unknown and unorganized people.”