WHY CBN MOVED AGAINST CRYPTOCURRENCY.

Trading in Cryptocurrencies is not backed by the Central Bank of Nigeria (CBN) Act which recognizes the naira as the only legal tender in the Nigerian financial system, an analyst has said.

The CBN had on Friday, directed Deposit Money Banks (DMBs), Other Financial Institutions (OFIs) and Non-Bank Financial Institutions (NBFIs) local financial institutions to close accounts belonging to crypto currency operators.

But a member of the Monetary Policy Committee (MPC) said on Saturday that the apex bank never prevented any individual from dealing in cryptocurrency, adding that what the apex bank said was deposit money banks under its purview cannot partake in cryptocurrency because it will be illegal.

The MPC member, who spoke anonymously, explained that crypto trading would undermine monetary policy which is anchored on Naira money supply and demand.

“CBN is also concerned that bitcoin valuation is excessively speculative, akin to betting, and it will not make sense to run a currency system based gambling,” he said.

Continuing, he said: “Why people will come charging on CBN Governor Godwin Emiefele over banning banks from digital currencies is inexplicable. Bitcoin and other variants of digital currencies are not only unregulated the world over, but they are now used as weapons by cyber criminals.”

The MPC member said the last time cyber criminals hijacked the customer data base of one of Nigerian banks, they demanded ransoms in bitcoin before they released the database.

“And since bitcoin addresses are psedonymous, it is not possible to trace them. The CBN cannot fold its arms and see cryptocurrency destroy the entire banking system with all the unsavoury consequences of banking crisis and bailouts. Turkey had also banned bitcoin because it was becoming a channel for money laundering on an unimaginable scale,” he said.

“So, if any Nigerian wants to deal in digital currencies, bitcoin, or whatever, such person is free to do so, only that there is no platform for a cryptocurrency payment system. Accordingly, such a person could as well go to wherever such platform is legalised since the bitcoin market is virtual 24/7,” he said.

In a letter forwarded to all DMBs, OFIs and NBFIs, the regulator noted that “breaches of this directive will attract severe regulatory sanctions"

Comments

THE RENT VEIL: A Sermon review

The Rent Veil, a sermon delivered by Charles Spurgeon provides a deep theological exploration of the tearing of the veil in the temple at the moment of Christ’s death (Matthew 27:51). Spurgeon explains that this event holds profound meaning for Christianity, signifying the removal of the separation between God and humanity, ushering in a new era of accessibility to God through Christ. The sermon dives into the Old Testament practice of temple worship, where a thick veil separated the Holy of Holies—God’s earthly dwelling place—from the rest of the temple, allowing only the high priest to enter once a year. The tearing of the veil, according to Spurgeon, marks the fulfillment of Old Testament prophecies and the end of the sacrificial system. Spurgeon points out that the death of Jesus is a marvel of time and eternity. Using the imagery of Aaron's rod turned serpent which swallowed the magicians', he described this miracle as one which outshines every other power mira...

FAITHBERG

The Gigantic Voyager was a grand vessel, her sails billowing like the wings of a mighty albatross as she cruised through the cerulean waves of the North Atlantic. On board, twelve-year-old Rudolf stood by the ship's starboard, his heart filled with equal parts wonder and trepidation. Just before their journey, he'd been engrossed in the tale of the Titanic—a story that chilled him to his bones. His grandmother, Sheila, had noticed the concern in his eyes. "Rudolf, my dear," she had said with a gentle but firm tone, "the sea is as fickle as it is beautiful. Dwelling on the past, especially such tragedies, may invite misfortune." Rudolf had nodded, but the shadow of the Titanic lingered in his thoughts like a storm cloud on the horizon. Days into their voyage, the sea that had been calm and inviting began to show adverse signs. The wind picked up, howling through the rigging, and the once-placid waves grew into towering swells that tossed the ship ...

GIVING THANKS TO GOD

Melrosechurch.org Jesus' response to the pharisees who demanded that he should rebuke his disciples at his triumphant entry to Jerusalem is a very instructive one, He had responded that, "… if these should hold their peace, the stones will immediately cry out ", signalling that God gets his praise from the entirety of his creation and as such, if any created group deem themselves too important, there are more than enough alternatives to step into that void. Most of the times, the discourse about giving thanks to God is often steered along the course of why we should do it and what happens if we do it, albeit, we often overlook the undesirable outcome of not doing the same. Jesus' response paints a gory picture of disgraceful replacement and sidelining for those who do not see reason to thank God. As revealed in revelations 4:11, our major preocuppation as creatures of God should be to worship him with all we are and have, and as matter of fact, one the ...

Paragon Sleuth

Search This Blog