The Central Bank of Nigeria has defended the recent ban on digital currencies, saying it was in the best interest of the public. Speaking during a recent Senate hearing, the central bank’s governor Godwin Emefiele further claimed that digital currencies are not legitimate money. CBN issued a circular two weeks ago prohibiting all banks from processing digital currency-related transactions.
Nigerian banks ordered to shut down accounts dealing in digital currencies.
The central bank, in its circular, ordered banks to identify individuals and firms dealing in digital currencies and shut down their accounts. Days later, the Senate called on the CBN governor to brief it on the decision as several senators felt the ban was too harsh and hoped the central bank would reconsider. According to a local report, the governor has stood his ground, defending his decision to ban digital currency payments. Emefiele claimed that the use of cryptocurrencies by unregulated entities went against an existing law as well as against the CBN’s mandate.
Regulators continue to scrutinize digital currencies.
Nigeria is not the only country to approach the crypto industry with skepticism; several other countries have also expressed concern over the growing crypto industry. As reported earlier, the Indian government is also planning to ban all cryptocurrencies in the country soon. A new anti-crypto is reportedly planned to be introduced in the parliament that proposes to ban cryptocurrencies. The bill also proposes a framework for a digital rupee. The central bank of India had previously banned cryptocurrencies, but the ban was overturned by the Supreme Court last year. Since the recent bitcoin’s massive winning rally, several countries have proposed more strict regulations for the crypto industry.