Expert commends CBN for lifting restrictions on Cryptocurrency transactions
In a recent interview with journalists in Abuja, Mr Okechukwu Unegbu, a financial expert and former president of the Chartered Institute of Bankers of Nigeria (CIBN), commended the Central Bank of Nigeria (CBN) for lifting the restrictions on cryptocurrency transactions.
This move was announced in a circular issued by Haruna Mustapha, the Director of Financial Policy and Regulation at the CBN.
The CBN’s decision to reverse the policy banning cryptocurrency transactions from the Nigerian banking system has been met with praise from experts like Unegbu.
This move is seen as a positive step towards embracing the potential benefits of cryptocurrencies and promoting financial innovation in Nigeria.
Unegbu emphasised the importance of this decision, stating that it would open up new opportunities for Nigerians to participate in the global digital economy.
He also highlighted the potential for cryptocurrencies to enhance financial inclusion and facilitate cross-border transactions.
The lifting of restrictions on cryptocurrency transactions by the CBN is expected to have a significant impact on the Nigerian financial landscape.
It is anticipated that this move will attract more investors and businesses to explore the potential of cryptocurrencies, leading to increased economic growth and development.
Mustapha said that the apex bank would now provide regulations for financial institutions on how to manage cryptocurrency to avoid misuse.
The CBN had issued a circular in February 2021, restricting banks and other financial institutions from operating accounts for cryptocurrency service providers.
The then CBN Governor, Godwin Emefiele, had announced that the restriction was necessary in view of the money laundering and terrorism financing risks posed by cryptocurrency.
Emefiele also said that the vulnerability inherent in cryptocurrency operations, as well as the absence of regulation and consumer protection measures were also responsible for the policy.
According to Unegbu, it is good to try every available product and opportunity within the financial system.
He, however, warned that cryptocurrency and other such financial products should not be allowed to be used for fraudulent activities or to hamper professionalism.
“There is actually nothing wrong with cryptocurrency, even though it has its own risk, just like any other business.
“It can be more effectively regulated, and a lot more awareness should be created about cryptocurrency so that Nigerians will be aware of the risks involved.
“But the banks should not be made to get directly involved in cryptocurrency as a matter of policy,”’ he said.
Unegbu also advised the CBN to hands-off regulation of Micro-finance Banks (MfBs), as it was not their turf.
“The CBN does not know how to handle MfBs because they are closer to the people.
“The MfBs should be helped to survive through policies, funding and development finance policies like the Anchor Borrowers Programme “ he said.
On allegations of financial impropriety against former CBN governor, Mr Godwin Emefiele, Unegbu described the allegations as “mind-boggling.”
He, however, said that Emefiele deserved an opportunity to say his own side of the story, and to defend himself.
