Senate summons CBN Governor over ban on Cryptocurrency

THE Senate has summoned the Governor of the Central Bank of Nigeria, Godwin Emefiele over the ban on use of cryptocurrency in the country.

The motion to invite the apex bank’s governor was moved by Senator ID Gyang.

Gyang’s motion was titled, “CBN’s decision to stop Financial Institutions from transacting in Cryptocurrencies and matters arising therefrom.” and it was seconded by Senator Tokunbo Abiru.

The legislators resolved to mandate the Committee on Banking, Insurance and other Financial Institution ICT and Cybercrimes, and Capital Market to invite the CBN Governor for briefing on the opportunities and threats of the Cryptocurrency on the nation’s economy and security and to report back findings within two weeks.

According to Abiru, “The last five years, we have had people changing cryptocurrencies to over 500 million dollars. It is good to ban because of the challenges it has presented; in reality, banning it doesn’t take it away.

He added, “Even our Security Exchange Commission (SEC) also recognized cryptocurrency as a financial asset they need to regulate. What we should do is to invite the major stakeholders to a public hearing.”

But opposing both senators, Senator Solomon Adeola said he was against the outright ban by CBN. He said the CBN should tell Nigerians regulations it has put in place to regulate the activities of the operators and not an outright ban.

“I would indulge this Senate to allow the regulators also to be invited so that they can also tell the Committees their own position concerning the operation of cryptocurrency in Nigeria,” Senator Adeola said.

Senator Biodun Olujimi also said that what can be done is to ensure bad people must not use it. She said the time has come that issues concerning cryptocurrency are harmonized.

On Friday, the CBN directed banks to close accounts of persons or entities involved in cryptocurrency transactions within their systems.

The apex bank gave the direction in a circular released to deposit money banks (DMBs), non-bank financial institutions (NBFIs), and other financial institutions (OFIs).

The ban led to outrage from Youth across the country with many deriding the current administration as “analogue” in an evolving digital world.

The youth have been demanding that the ban be reversed.