CBN and the Nigerian Youth on Cryptocurrency
By Ashiru A. Hamza
Some may for the first time here about Crypto Currency. It (crypto currency) is a digital currency that has value of measure like that of fiat.
It may also be termed as a stock that is traded on the internet through digital market (exchanges).
The number of Crypto currency users has been the daily increase not only in Nigeria but also in other parts of the world. People do invest in crypto currency for the profit in return, buy or sale product online, payment for online services etcetera.
On Friday 5th February, 2021 a controvercial circular on Crypto Currency dealings ban by the Central Bank of Nigeria (CBN) surfaced and it immediately engulfed the social media and other news platforms. The circular instructed all Deposit Money Banks (DMBs) to close any bank account used for crypto currency dealings.
This issue created hovoc particularly among those youth in the Crypto circle. Some of the Crypto Currency markets like Binance, Luno, Roqqu have reacted to the circular, asking people to withdraw their Nigerian naira and not deposit any further and now, both deposit and withdrawal of Nigerian Naira is no longer in use, on those Crypto markets.
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CBN has stated reasons why imposed this policy, as captured in the nondated video featuring the Deputy Director Banking and Payment Musa Jimoh, saying “one of the number one concern of the CBN is when it comes to consumer protection.” Going by record, the same circular was issued to Nigerian banks in 2017, so the CBN only reiterated their position.
However, he further said “blockchain is the technology that has come to stay” meaning that blockchain is the future technology that would takeover not only financial transactions but also other records would be kept with transferrancy and security.
“CBN have set a committee that will investigate and identify various uses (of blockchain) that we should focus on, and put guide line on how to use them”
He concluded that blockchain is the future of the financial transactions.
Also in the recent press release dated 7th February, 2021, endorsed by Osita Nwanisobi Ag. Director, Corporate Communications, CBN, stated that the recent policy imposed is just to protect Nigerians from “the risk inherent in crypto currency transaction”
This release further states “…crypto currencies are anonymous, untraceable they are increasingly being used for money laundering, terrorism financing and other criminal activities”
However, many youths see this development as a setback to them being gainfully self employed through the benefits of the Crypto business. This is more visible especially with their various expressions on Social Media.
A user by name @WhiteSammy, on Twitter even blurted out that “Crypto currency is the future whether CBN likes it or not,…”
This statement seems in agreement with the one made by Jimoh that “blockchain is the technology that has come to stay”
Cmrd A. A Hamza
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