The Central Bank of Nigeria(CBN) on Tuesday said its directive to banks to discontinue transactions on crypto currency was to protect Nigerians involved in transparent bank transactions.
CBN’s Governor, Mr. Godwin Emefiele said this at an interactive session with members of Senate Joint Committees on Banking, Capital Market and ICT.
Recall that, Senate had on Feb.11 at plenary mandated its joint committees to invite the CBN Governor, and Director General of Security and Exchange Commission (SEC) to brief the committee on circumstances leading to ban on cryptocurrency transactions.
Addressing the lawmakers at an interactive session with stakeholders in financial institutions in the country,Emefiele in his presentation said:
“Let me state that this decision is in the best interest of every well meaning Nigerian, who have nothing to hide and is happy to have traceble and transparent dealings in our financial system.”
He said cryptocurrency was a currency issued by largely unknown, unregulated elements using computer that are basically encrypted .
Consequently, he said transactions on cryptocurrency was designed to hide information about the transactions and the operators,adding the cruptocurrency model was created out of a thin air.
“Cryptocurrency is used to describe the activities of traders in an electronic dark world where transactions are extremely opaque, not visible and not transparent.
“These are people who deal in transactions that do not want to be trailed.
“The definitions of cryptocurrency was scary enough to scare anxiety for any regulator or Central Banker in any part of the world and that is the reason, virtually all regulators in the world did not recognise it.”