As per the reports, the latest directive from the Central Bank of Nigeria had resulted in an outcry by the crypto-community. However, the Central Bank of Nigeria has clarified that it has not implemented any new cryptocurrency laws or regulations. The firm has reaffirmed its stance with a new statement to clear out any confusion about the implementation of the new law.
The latest document released by the Central Bank of Nigeria is composed of five pages. The Central Bank has stated that the directive released is to ensure the safety and protection of the financial system of the country. The protection being referred to by the CBN is from the risks that are related to cryptocurrencies.
Following the claims, the CBN states that it has placed no new restrictions on cryptocurrencies but has simply reminded the financial institutions and banks of what was said back in 2017.
According to the directive from back in 2017, the Central Bank of Nigeria had reminded all financial institutions that cryptocurrencies are banned to be traded in the country.
The directive ordered all the banks in the country to close all the accounts that were opened through cryptocurrency exchanges or other firms.
Among all other countries in Africa, Nigeria is the country that is observing a vast amount of adoption in cryptocurrencies. The use of cryptocurrencies among the locals as well as institutes in the country is also increasing. At present, Nigeria is considered to be one of the leading cryptocurrency markets in the entire world.
Despite all the success and adoption in the country, the Central Bank of Nigeria is still trying to ignore such evidence. Instead, the Central Bank of Nigeria has re-instated a directive from 2017 that is set to sideline the cryptocurrency firms from having accounts in financial institutions.
The Central Bank of Nigeria has been using many claims to back their statements and decision on the banning of cryptocurrencies. In one instance, it was revealed that the CBN quoted the recent actions taken by China where it banned and closed all cryptocurrency exchanges in the country.
In another instance, the Central Bank of Nigeria has tried to discredit cryptocurrencies by quoting Warren Buffet’s infamous remarks that he made against Bitcoin (BTC).
However, the Central Bank of Nigeria has stated that given the current circumstances, it will continue to ban cryptocurrencies. The CBN stated that it does not consider that cryptocurrencies are a safe and reliable financial solution. Therefore, it does not feel comfortable letting its citizens use cryptocurrencies as means of making income.
The CBN has also made it clear that it will do whatever it needs to do under its regulatory powers to educate its citizens so they are also aware of the negatives of cryptocurrencies.