|On the ban of cryptocurrency by CBN|
By AG Mukhtar
Reported by SAMEEN Y SAEED DR SYS
Crypto is globally trading and Nigeria is the 2nd country of most use crypto BITCOIN after US. It has been estimated that BITCOIN worth of $500m have been traded in five years in Nigeria. Since crypto currencies are dealing with the financial transaction it has to be regulated by using certain laws and regulations in order to protect the investors and the traders that engage in the crypto trading but the problem is that Bitcoin trading is decentralized which is hardly to be regulated by any institution through using any law. This is the reason why CBN remains with no option than to ban it.
Therefore, the way i understand CBN’s circular that read the banning of crypto trading and exchanges i noticed that many people read and do not understand, the CBN is not stopping people from engaging into crypto business, but people cannot do it using their Bank accounts because crypto currency is not an approved legal tender or medium of exchange in the country yet. Crypto currency trading is something bigger than they think.
There is no fault if CBN ban crypto currency trading in Nigeria base on the reasons the apex Bank had given out ranging from the series of the problems the crypto business is associated with; the apex bank defined crypto trading in Nigeria as terrorism financing, it is a form of money laundering, not accepted as legal tender, risk and it’s not back up by law.
But the apex bank (CBN) had forgotten to consider the kinds of series of problems associated with the banning of crypto trading outrightly. The problem is the plight of the investors; people wholeheartedly believe in crypto trading and invest so huge amount of their money into the business, and suddenly it was banned. What’s the plight of the traders and investors ?
Another problem is not the banning, but the timing of banning the crypto trading and closing it with immediate effect which must have multiplier effect on the account of the users of the crypto traders as the DMBs, NBFAIs and OFIs have been directed to identify any persons or entities transacting in or operating crypto currencies exchanges within their systems and ensure such account are closed immediately by CBN.
Crypto is now being used world over, and it has been decentralized that’s why it was tagged as future currency, block chain technology and artificial intelligence. It has been encrypted and secured that’s why most people believe in it and had keen interest to invest in it.
In my personal opinion CBN should ought not to directly ban crypto currency trading in Nigeria rather it should regulate the trading system, let the CBN come in to the system and regulate it through using a strategic platform system that can easily facilitate the payment and exchanges while dealing with the crypto currencies trading. In this, the CBN itself has means of earning a commission from any crypto exchanges and trading. Even though the crypto is decentralized, meaning that it doesn’t require the involvement of any third party in the course of dealing with the transaction of the crypto unless if it is centralized.
Our economy is now being stagnated and has been dominated and conquered by high rate of unemployment. And now people are making a living with this new digital economic system of block chain technology.
AG Mukhtar has bagged his Degree Honour in Economics from prestigious University, Bayero University Kano.
He has the Experienced in financial and Economics analysis, he’s also a quit Social Activitist.
Reported by SAMEEN Y SAEED DR SYS