Banning Cryptocurrency Transactions is not Right - Kingsley Moghalu

By EDITOR on February 8, 2021

Share on facebook Yahoo mail icon Gmail icon

Views: 419


A former deputy governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu, has urged the apex bank to look at ways of managing the risks of cryptocurrencies rather than impose an outright ban.

He said this on Sunday, during Channels TV’s Politics Today show, while reacting to the CBN directive that all Nigerian banks should close all cryptocurrency-related accounts.

Mr Moghalu, who served as a deputy governor of CBN between 2009 and 2014, and was the presidential candidate of the Young Progressive Party during the 2019 election, said he would not have taken such a decision if he had the opportunity.

As a former deputy governor in charge of financial system stability, Mr Moghalu said he would have been aware or conscious of the risks of cryptocurrencies.

The regulator had on Friday ordered Nigerian banks to close all cryptocurrency-related accounts. It has also barred financial institutions from facilitating cryptocurrency payments in the country.

In the letter, the CBN referenced a circular it issued on January 12, 2017, which cautioned Deposit Money Banks (DMBs), Non-Bank Financial Institutions (NBFIs), and other financial institutions (OFIs) as well as members of the public on the risks associated with such transactions.

Also, in a statement issued on Sunday, the apex bank explained why it banned cryptocurrency-related transactions in the country, claiming the digital currency is used for money laundering and terrorism.

READ ALSO: Why We Banned Cryptocurrency Transactions - CBN

The decision has sparked outrage from mostly young people in a country that is the world’s second-biggest user of virtual currencies like Bitcoins.

The former vice president, Atiku Abubakar, in a statement issued on Saturday had called on the CBN to reverse its policy directing Nigerian banks to close all cryptocurrency‐related accounts and stop such transactions in the country.

He said the first challenge facing Nigeria is youth unemployment and that it is an emergency that needs urgent attention.

Mr Moghalu in his response said there is a reality in the world today that a lot of the world is going digital, and that cryptocurrencies are part of it.

“So my attitude would be how can we best manage the risks of cryptocurrencies to ensure that they do not affect the stability of the financial systems. That’s what I would have done,” he said.


The former CBN official said, “I would not recommend banning it (cryptocurrencies) outright in exchanges because also, $500 million worth of Bitcoins have been traded in Nigeria within the last five years.”

He said, “This is livelihoods for Nigerians, so why would you take actions that look as if you are taking away opportunities from Nigerians especially in a depressed economy.”

Mr Moghalu explained that one of the things that attract Nigerians a lot to cryptocurrencies is because a lot of the policies that have come out from the CBN in recent years are a bit ad-hoc as a result of the day-to-day changes and policies that concern remittances and forex exchanges.

“But trading in cryptocurrencies protects them from fluctuations in the value of the Naira because every currency in the world depreciates in value over time because of inflation and this is one of the reasons why a lot of people go for cryptocurrencies,” he explained.

They are risky, he said, but they don’t have the problem of depreciation because of inflation.

“In fact, in 2018 the value of a Bitcoin was about $3000, today about two and half years it’s $38,000 for one BTC. So this gives you a sense of whats going on. Now does that mean it is sustainable? No!” he said.






Posted on February, 8 2021

Share on facebook Yahoo mail icon Gmail icon

You may also like...
Ex-Service chiefs: Association backs Buhari over nomination

EXCLUSIVE: Abidemi Rufai faults U.S. government’s fresh fraud...

News Commentary: Sunset for Boko Haram With Operation...
Just In BREAKING: President Muhammadu Buhari Appoints Umar Mohammed Etsu as Acting Solicitor General of the Federation. Olonisakin Meets Cameroon’s External Minister, Pledges Nigeria’s Commitment to Improved Ties Federal DPP Tackles Mounting Prosecution Cases amid High Expectations Sound Sultan Gone in A Blaze of Glory. Former Kaduna Deputy Governor, Bantex is dead; El-Rufai mourns New moon sighted, Sultan of Sokoto announces Tuesday, July 20 as date for 2021 Eid-el-Kabir Nigerians in Yaounde troop out for former Chief of Defence Staff, Olonisakin, as Nigeria’s High Commissioner to Cameroon. Mele Kyari: Two Steady Years of Walking the Talk as GMD NNPC. Group Lauds NNPC's Spokesman, Obateru for NIPR Fellow Award. Constitution Amendment Will Tackle Separatist Agitations, says Senator Aliero


Most Read How Alison-Madueke Allegedly Paid Ex-Minister Akinjide, Others N650 Million – Witness (6,340 views) ‘More to unfold after Lawal Daura’s sack’, hints top Buhari aide, as new DSS boss moves to re-position agency (6,105 views) Kebbi Gov 2019: Who is Afraid of DCG Ibrahim Mohammed Mera? (3,708 views) How Chief of Defence Staff, General AG Olonisakin Has Actualized President Muhammadu Buhari’s vision of a Combat-Ready Armed Forces of Nigeria (3,651 views) Malami, Justice and Order under President Muhammadu Buhari (2,897 views) Sympathizers shocked as ex- IG of Police, Gambo Jimeta, bursts into laughter over his rumoured death (2,732 views) Looters’ list: FG after me for refusing to join APC – Former Niger Gov, Aliyu (2,439 views) Uproar as Dikko, Minimah, Amosun top FG's updated 'looters' list (2,379 views) FG Inaugurates Board Chairmen, Members February 27 (2,325 views) Igbos spend unnecessary money on burials - Peter Obi (2,220 views)


SECTIONS Celebrity (1) Crime (5) Discovery (1) Economy (4) Editorial (8) Faith (1) Foreign Files (3) Governance (15) Nation (33) Oil and Gas (5) Opinion (5) People and Power (3) Politics (19) Security (16) Sports (2)