Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN) said that there was no time the bank banned the activities of Cryptocurrencies in the country, this was disclosed in Abuja at the 30th seminar for Finance Correspondents and Business Editors organised by the bank.

 

Emefiele, who was represented by Adamu Lamtek, Deputy Governor, Corporates Services, said what the bank did was to protect the banking sector from the activities of Cryptocurrencies and not a ban on its activities.

 

The CBN did not place restrictions from use of Cryptocurrencies and we are not discouraging people from trading in it. What we have just done was to prohibit transactions on Cryptocurrencies in the banking sector.

 

Emefiele reiterated that the CBN did not place any new restrictions on the use of cryptocurrency in Nigeria. “Our recent directive only amplified an earlier regulation on the subject of cryptocurrency. The recent directive became necessary to protect the financial system and the generality of Nigerians from the risks inherent in crypto asset transactions, which have escalated in recent times, with consequences onf financials and implementation of monetary policy.

 

“However, our policy stand does not preclude Nigerians from the benefits of the underlying technology that support crypto transactions, which is a distributed ledger, commonly referred to as blockchain. There are several examples where blockchain technology has been used to facilitate and improve transparency in the settlement of trade transactions.

 

“Our regulatory sandbox is available for fintech companies to explore the use of blockchain technology in areas that would be beneficial to the Nigerian economy”, he noted.


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