CBN crypto ban and its ramifications for Nigerian banks | Nairametrics

CBN to Launch Nigeria’s Cryptocurrency This Year, Months After Ban

Nigeria will officially have its own digital currency this year according to Rukiyat Mohammed, the Director for

Information Technology at the Central Bank of Nigeria (CBN).

Mohammed stated that the financial regulator had been conducting extensive research on the cryptocurrency market

in a bid to provide the country’s digital coin.

She said the same way everybody has access to cash, the digital asset will also be available to everyone once the

Central bank roll it out by the end of the year.

What the central bank is saying

This was made known during the Bankers Committee meeting on Thursday, where she informed the public that

stakeholders in the cryptocurrency market will be included into the central governance structure.

Despite the risk involved in the virtual currency, which has often been Emefiele’s cause for concern, the CBN is now

willing to bet on the digital asset, according to Mohammed:

“We have spent over two years studying this concept of central bank’s digital currency and we have identified the risks.

“And it is one of the reasons why I said we are setting up a central governance structure that would involve all industry stakeholders to access all the risks as we continue on this journey.”

“Very soon we would make an announcement on the date for the launch and by the end of the year we should have the digital currency.”

Why CBN now has interest in digital coin?

For years, the central bank governor, Godwin Emefiele, states the critical usage of the cryptocurrency, for

funding criminal activities. Only recently, at the Monetary Policy Committee of last month, did he started to shift ground.

In Mohammed’s explanation, the cost of transaction, as well as cash management in Nigeria will be reduced with the

introduction of the CBN-backed digital coin.

The apex bank believe that its crypto will be a catalyst for remittance growth in the country, as well as regulate the

virtual currency market in the country.

Although she stated that bitcoin, Ethereum, Binance coin and other cryptocurrencies remain privately-controlled:

“Let me state categorically that cryptocurrency such as Bitcoin and the rest of them are not under the control of the central bank; they are purely private decisions that individuals make.

By Taiyelolu A

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