Indigenous digital currency

Nigeria to create indigenous digital currency – CBN

Nigeria to create indigenous digital currency – CBN

Indigenous digital currency – Following questions and arguments on why the Nigerian apex bank decides to ban cryptocurrency in Nigeria the Central Bank Governor has announced that the country will soon create a digital currency of its own.

The Central Bank Governor, Emefiele disclosed this on Tuesday by the end of the MPR meeting in Abuja while fielding questions from a group of journalists.

Recall that the CBN through its circular on February 5th directed all financial institutions, Deposit Money Banks, etc to desist from aiding crypto-related transactions, should as well close down and report all accounts related to such activities.

In the aftermath, The Central Bank came under heavy criticism by angry Nigerians, politicians, analysts, and the Vice President of the country, Professor Yemi Osinbanjo.

It was opined that the apex bank should have adopted and design strategies for the regulation of the cryptocurrency industry in Nigeria than close it down.

CBN cited several reasons ranging from lack of identity provided by cryptocurrency, and its effective use as a tool for Money Laundry, and Terrorism Financing.

While Nigerians have continued to cry out loud on Nigeria’s crypto as a way forward to financial freedom, the Central Bank has decided to provide a way out which,

According to Godwin Emefiele, the idea of digital currency will become a reality in Nigeria, adding that the apex bank has already set up a committee working tirelessly to achieve its creation.

In his words “We have carried out our investigation and we found out that a substantial percentage of our people are getting involved in the cryptocurrency which is not the best.

Don’t get me wrong he continued, some may be legitimate but most are illegitimate.

Under cryptocurrency and bitcoin Nigeria comes 2nd while on the global side of the economy, Nigeria comes 27th. We are still conducting our investigation and we will make our data available.”

Citing his concerns on digital currency, Emefiele brought CEO Tesla, Elon Musk as an example.

“We saw the market collapse. Initially, when Elon Musk tweeted around the time when we said our banking and payment facilities are no longer available for cryptocurrency transactions and he tweeted that he will invest $1.5 billion and the price of BTC went up, he now tweeted and raised a few concerns and it plunged.”

CBN Governor however ensures everybody that indigenous digital currency will come to stay in Nigeria.

However, the MPC on Tuesday retained the Monetary Policy Rate at 11.5% to retain the Cash Reserve Ratio at 27.5%, while the Liquidity Ratio settles for 30%.

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