Since the beginning of the month of February 2021, the situation of the cryptocurrency industry in Nigeria is very dire and alarming. Everything was going smooth with respect to crypto-adoption and growth in the country until the Central Bank of Nigeria (CBN) decided to abruptly ban it.
It was February 5, 2021, when the Central Bank of Nigeria (CBN) issued a directive to the banks in the country. The directive reminded all the banks in the country of the law that was passed by the CBN back in 2017. It was also signed by the Governor of the Central Bank of Nigeria (CBN) from back in 2017.
As per the directive, the usage of cryptocurrencies in any way in the country was to be banned with immediate effect. Therefore, all the banks in the country were sent clear instructions to ban and suspend any accounts they had which were linked with cryptocurrencies somehow.
The Central Bank of Nigeria (CBN) also advised all the cryptocurrency users in the country to liquidate their assets before they end up facing any legal actions.
The decision made by the CBN resulted in fury all across the cryptocurrency industry whether it was the cryptocurrency firms or the cryptocurrency users.
Not only the cryptocurrency industry but even the Nigerian Securities and Exchange Commission (SEC) protested against CBN’s decision. The SEC admitted the role and the significance that the cryptocurrency industry holds in the success and economic boost of the country.
The SEC also stated that banning something because of the possibilities of the technology being used by criminals is not a solution. There are always rules and regulations that can help control and streamline the process, creating an ecosystem where the industry can thrive.
The SEC also assured that it was going to work with the Central Bank of Nigeria with the aim to introduce new rules and regulations surrounding the issuance, activities, and trades of cryptocurrencies in the country.
However, the Governor of the Central Bank of Nigeria, Godwin Emefiele seems to be defending the decision that the apex bank has made. Emefiele stated that he completely supports the decision that the Central Bank of Nigeria has made in banning cryptocurrencies in the country for good.
Emefiele made this statement when he was summoned before the Senate Committee on ICT and Cybercrime, Banking, Insurance, and Other Financial Institutions as well as Capital Market.
It was during the Senate Committee session, the Governor of CBN stated that the decision made by the central authority is in the better interest of the entire country.
The Governor went on to state that the cryptocurrency industry is illegitimate, which makes it incompatible with their monetary system at least for this time.