Economic expert flays CBN for banning cryptocurrency, proffers way forward
‘It’s myopic to ban crypto without due consideration’
By Ekene Agbor, Osogbo
An economic expert, Mr Paul Alaje has lashed out at the Central Bank of Nigeria (CBN)for banning banning cryptocurrency-related transactions in the country without due consideration.
CBN, last Friday stopped banks and financial institutions in Nigeria from dealing in Cryptocurrency or facilitating payment for Cryptocurrency exchange – wether Crypto coin or Crypto token.
The bank had explained that it banned cryptocurrency-related transactions in the country because the digital currency is used for money laundering and terrorism.
Speaking on the ban, Alaje said it is myopic of Nigerian authorities to stop the crypto transactions without due consideration.
Alaje called on Central Bank of Nigeria to reconsider their decision and quickly call for a stakeholders meeting. “I am advising the CBN to create a more robust vision; saying everybody should drop from crypto is not the way to go and I don’t think is right.”
With Nigerians having traded over 500 million dollars in Bitcoin, making it the second largest Bitcoin market after the United States of America, Alaje said investment is going to be affected and the ban will have tremendous negative impacts on local economy in the country.
He said this while featuring on a radio programme (Rave FM) monitored by News Boom on Wednesday.
According to him, “this crypto phenomenon will be applicable in future. Nigeria needs to take a position, we can have a security exchange Commission saying we have studied it and saying it is a great idea and another agency of government in thesame financial system is saying no. There seems to be confusion and people may even lose their money more because people may not be able to withdraw their money owing to policies of government.
“Crypto may end up being the global currency that the whole world has spoken about. When you look at it, it becomes inevitable for the world in the near future, I don’t know, it may be five, ten or twenty years to be a single currency because the world was tested with a social separation. The global economy is going through a turmoil right now and economic quagmire where currencies are devaluing but with super power organisation, is reducing the world to a village, so the exchange world must come to terms and agree on a single currency, what the name would be, I don’t know but it’s certain and the world should prepare for single currency.
“Naira has been used in the past to finance terrorism and banditry, have we therefore closed all the Naira accounts in Nigeria? The answer is no! So, why crypto? Naira, dollars and others have similar tendencies to be used to finance terrorism, so, should we now close them because they serve as means of exchange? Do you know cows could be used in exchange of armunition? Do you now say all the cows in the country should be killed? That’s a myopic way of thinking. We must come up with robust policies, that’s what Government officials that are not lazy should do.
“This is very significant and you don’t look at a critical sector like this and say you want to cut it off because investment is going to be affected and it’s going to have tremendous negative impacts on local economy. Because they are risked-based investments doesn’t mean it’s illegal.
“I will rather advise the Government to call for a stakeholders meeting and include the crypto trading community so that they would know those who are fake among them. Create a guideline for crypto traders. It will be very myopic for authorities to think that that sector can just be shut down without due consideration. I am advising authorities particularly the Central Bank of Nigeria to reconsider this and quickly call for a stakeholders meeting. I am advising the CBN to create a more robust vision; saying everybody should drop from crypto is not the way to go and I don’t think is right,” Alaje said.
