Senate Invites CBN Governor Over Cryptocurrency Ban

February 11, 2021
Senate Cryptocurrency Ban

By Ahmed Rahma

The Senate has invited the Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, to explain the opportunities and threats of cryptocurrency on the nation’s economy.

The invitation of the CBN Governor is sequel to a motion by a member of the red chamber, Mr Istifanus Gyang, during plenary on Thursday, on the CBN’s directive to stop financial institutions from transactions in cryptocurrencies.

Speaking on the matter, which has generated reactions since last Friday, the federal lawmakers called for caution, pointing out that while cryptocurrency has its negative side, it has become the fastest-growing form of transaction all over the world.

They argued that technology has changed the way business is conducted in Nigeria and the country cannot run away from cryptocurrency.

Speaking on the subject, another lawmaker, Mr Solomon Adeola, submitted that, “I am strongly against the outright ban of this medium of exchange by the CBN.

“What the CBN should be telling Nigerians are the regulations put in place to regulate the activities of the operators.

“All over the world, these cryptocurrencies are regulated.

“The operators of this so called currency are everywhere.”

Also speaking, Mrs Abiodun Olujimi said, “We didn’t create cryptocurrency and so we cannot kill it and cannot also refuse to ensure it works for us.

“These children are doing great business with it and they are getting result and Nigeria cannot immune itself from this sort of business.

“What we can do is ensure bad people must not use it. This motion is most important to us. The time has come for us to harmonize all the issues concerning cryptocurrency.”

On his part, Mr Tokunbo Abiru, the immediate Managing Director of Polaris Bank Limited, argued that, “In the last five years, we have had people changing cryptocurrencies to over $500 million.

“It is good to ban because of the challenges it has presented; in reality, banning it doesn’t take it away. Even our Security Exchange Commission (SEC) also recognized cryptocurrency as a financial asset they need to regulate. What we should do is to invite the major stakeholders to a public hearing.”

After deliberations, the Senate resolved to mandate the committees on Banking, Insurance and other Financial Institutions, ICT and Cybercrimes, and Capital Market to invite the CBN Governor for briefing on the opportunities and threats of cryptocurrency on the nation’s economy and security and to report back findings within two weeks.

Rahma Ahmed

Ahmed Rahma is a journalist with great interest in arts and craft. She is also a foodie who loves new ideas. She loves to travel and would love to visit other African countries someday. She is a sucker for historical movies and afrobeat.

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