The Central Bank of Nigeria has cleared the air over the reported ban on Cryptocurrency in Nigeria.
The CBN said unregulated entities issue the Cryptocurrencies. Also, the apex bank alleged that cryptocurrencies are increasingly being used for money laundering, terrorism financing and other criminal activities.
It added that Small retail and unsophisticated investors also face a high probability of loss due to the investments’ high volatility in recent times.
The CBN said it would continue to do all within its regulatory powers to educate Nigerians to desist from its use.
According to the CBN, the recent circular did not place new restrictions on cryptocurrencies. The Bank said countries like China, Canada, Taiwan, and Indonesia have all placed a certain level of restrictions on cryptocurrency transactions.
Cryptocurrency In Nigeria
The CBN added that cryptocurrencies do not have any intrinsic value or generate returns by themselves.
Earlier, many Nigerians including Former Vice President, Atiku Abubakar, former Minister of Education Oby Ezekwesili and many others had faulted the ban on cryptocurrency.
Speaking on the CBN’s circular, they said such a move might increase the economic pressure already being experienced by youths.