By Following the recent ban on cryptocurrency in the country by the CBN, the Senate has directed its Committees on Banking, Insurance and Other Financial Institutions, ICT and Cybercrimes and Capital Market to invite the Governor of the Central Bank of Nigeria, Godwin Emefiele to offer explanations over the decision.
The Director General of the Securities and Exchange Commission (SEC), Lamido Yuguda, was also invited to meet with the joint committee.
This resolution followed the Senate’s consideration of a motion titled: “CBN’s decision to stop Financial Institutions from transacting in Crypto currencies and matters arising therefrom” sponsored by Senator Istifanus Dung Gyang, (Plateau North) and Senator Adetokumbo Mukhail Abiru, (Lagos East).
While presenting the motion, Senator Gyang urged his colleagues to note that the CBN has issued a directive stopping all financial institutions from transacting in cryptocurrencies, adding that the apex bank acted on its earlier directives in January, 2017 and February 2018 which “forbade banks not to use, hold, trade and/or transact in cryptocurrencies.”
He explained that CBN’s decision was said to have been predicated on the need to safeguard the Nigerian economy from the adverse effects of the cryptocurrency regime which are “unregulated digital or virtual currencies that are issued by anonymous entities and secured by cryptography.”
“Aware that the action and directive of the CBN has attracted sharp reactions from Nigerians and has become a topical subject of national discuss; and
“Realized that Crypto currency is both an opportunity and a threat, hence the Senate has a responsibility to ensure that the nation and citizens do not miss out on the opportunities that Crypto currency offers and in the same vein, mitigate and prevent likely consequential effects on the nation’s economy and security,” he added.
It would be recalled that the apex bank, on December 5, issued a directive to Deposit Money Banks (DMBs) and other financial insitutions to close customer accounts used in trading cryptocurrencies and other related transactions.
Though the CBN, in a statement, offered explanations for the decision, it has since been met with a number of criticisms from Nigerians.
