Nigeria’s Senate Demands Central Bank Chief To Explain Crypto Ban

Nigeria’s senate demands the central bank chief to explain the crypto ban imposed on Nigerian citizens as we are reading more in our latest crypto news.

Nigeria’s Senate summoned the top financial regulators of the country for a brief about the central bank ban on crypto as the bank ordered local financial institutions to stop providing services for crypto companies and users back on Friday. The Nigerian Tribune reported that the Senate mandated the banking committee to invite the governor of the central bank Godwin Emefiele and the director-general of the Nigerian Securities and Exchange Commission Lamido Yuguda to explain the decision to ban cryptocurrencies and explain the opportunities as well as possible threats of cryptocurrency. The Senate session discussing the issue was tweeted on the Senate Official Twitter page.

Welcome to a new Legislative Day in the Senate of the Federal Republic of Nigeria! pic.twitter.com/iZV3rtEEVF

— The Nigerian Senate (@NGRSenate) February 11, 2021

Last week’s CBN directive caused a stir on social media while the local crypto advocates wrote to the bank demanding clarification on the order. The CBN published a five-page statement that included a pledge to protect the citizens of Nigeria from the risks of cryptocurrencies:

 “[The CBN] will continue to do all within its regulatory powers to educate Nigerians to desist from its use and protect our financial system from activities of fraudsters and speculators.”

A number of senators opposed the CBN move and a ban on crypto but they spoke in favor of regulating the industry. Senator Bassey Akpan said:

 “The next level is a cryptocurrency and we can’t run away from it. It is CBN’s responsibility to bring Nigerians to the next level, not discouraging it. It is the simplest way of exchange.”

Despite the risks and dangers, crypto does have its merits as Senator Dung Gyang said. He added that the lawmakers want the CBN governor to explain the risks and opportunities that crypto offers the nation so that Nigeria will not miss out on anything. Another senator Solomon Adeola said that he is against the CBN ban on crypto and that the bank will instead be regulating the space. According to the reports, the Senate will take an informed position on the issue before the briefing. Senator Adetokumbo Abiru said that cryptocurrency is a major transaction tool in the country:

 “So I am not sure the CBN can ban it.”

Nigerian crypto users seemed undeterred after the CBN directive happened and turned to peer exchanges to continue with the trading. The Nigerian peer-to-peer trading surged ahead of Africa’s biggest crypto markets South Africa and Kenya once the announcement was made.