‘It’s Fueling Terrorism’ – CBN Speaks On Why It Banned Cryptocurrency

Central Bank of Nigeria ,CBN, has justified the ban on cryptocurrencies, saying it fuels illicit financial flow and terrorism.

Acting Director, Corporate Communications, CBN, Osita Nwanisobi, in a statement, said the ban on cryptocurrencies would not have any negative impact on Fintechs as there are other robust platforms they can thrive.
He said because cryptocurrencies are issued by unregulated and unlicensed entities, their use in Nigeria goes against the CBN’s critical mandates.

According to him, the use of cryptocurrencies in Nigeria is a direct contravention of existing law because of the critical difference between a Central Bank issued Digital Currencies and cryptocurrencies.
Nwanisobi said based on their opacity, cryptocurrencies have become well-suited for conducting many illegal activities, including money laundering, terrorism financing, purchase of small arms and light weapons, and tax evasion.

Nwanisobi noted that the CBN’s position on cryptocurrencies is not an outlier as many countries, central banks, international financial institutions, and distinguished investors and economists have also warned against its use.
He said China, Canada, Taiwan, Indonesia, Algeria, Egypt, Morocco, Bolivia, Kyrgyzstan, Ecuador, Saudi Arabia, Jordan, Iran, Bangladesh, Nepal and Cambodia have all placed certain level of restrictions on financial institutions facilitating cryptocurrency transactions