Kingsley Moghalu, former deputy governor of the Central Bank of Nigeria, believes that Apex Bank’s ban on cryptocurrency does not criminalize the use of the currency in Nigeria. In an interview with Channels TV on Sunday night, he also added that banning cryptocurrencies may not be the smartest choice CBN decided.
“I don’t think that cryptocurrency is criminalized; I interpret it as an instruction to financial institutions under the control of CBN not to process these cryptocurrencies,” he said.
He added that the directive is aimed at the exchange of cryptocurrencies. According to Moghalu, it did not “criminally criminalize individuals who conduct transactions based on cryptocurrency, although it will become more difficult if the transaction is suspected by CBN.” ~ “This is a gray area, but CBN stated that it is not such a legal tender, but They don’t have to tell me that we can exchange value. Therefore, it will not criminalize cryptocurrency.”
Declaring whether CBN’s decision to ban the use of cryptocurrency in the country was the smartest decision, Moghalu said, despite the bank’s 2017 A circular was issued stating that cryptocurrency is Moghalu’s assertion: “The U.S. Securities and Exchange Commission (SEC) recognizes cryptocurrency as a financial asset and stated in September that they will develop a regulatory framework for this.”
He revealed Bit Coins and other cryptocurrencies are recognized as “free currencies” because the value of cryptocurrencies is not determined by the value of the country’s legal currency,
“We need to understand that cryptocurrencies have no basic value, because they are different from ordinary currencies. Supported by foreign exchange reserves, the productivity of the country that owns the currency, and other factors…cryptocurrency is not the case. But we live in an innovative world where cryptocurrency bypasses the central bank. Moghalu further pointed out that the country uses Cryptocurrencies range from business to politics, especially for young people. Therefore, banning the use of currency may not be the best decision. There is a political aspect. It has a private economic aspect, as well as business opportunities for young Nigerians who trade these tools.
” The CBN directive is legal, but is it the smartest way to deal with cryptocurrency risks? I am not sure. He added. This is why I am worried about this response from the central bank.
Although CBN-Fmr prohibits the use of cryptocurrency, this is not a crime. CBN Lieutenant Governor Moghalu first appeared on the Kemi FIlani news.