#Bitcoin – Experts in the financial sector of the economy has explained the cryptocurrency ban by the CBN.
The apex bank today directed Deposit Money Banks (DMBs), Other Financial Institutions (OFIs) and Non-Bank Financial Institutions (NBFIs) local financial institutions against having any transactions in crypto or facilitating payments for crypto exchanges.
The President Bank Customer Association of Nigeria (B AN) Dr. Uju Ogubunka,who spoke with Vanguard said that the CBN’s directive doesn’t stop people from dealing in crypto currencies but they can not make any transactions with cryptocurrency through the banking industry. He said: “Cryptocurrency #bitcoin related isn’t the approved medium of exchange of Nigeria. The CBN approved the naira because the medium of exchange of the country. it’s within the statutory procedure of CBN that the banks and financial institutions must operate.
“The CBN isn’t stopping Nigerians to not deal in cryptocurrency trading but they can not love through the industry.” A Tier 1 banker who spoke to Vanguard on anonymity said: “The CBN has been issuing this warning on cryptocurrency exchanges for a protracted time. “With the recent circular, the CBN is saying that someone or entity who is receiving cryptocurrency as payment in his checking account and withdraws it as cash cannot try this again.
“Such an individual is being called to return and shut that account because it’ll not be functional. The bank isn’t saying it wants crypto dealers money. it’s saying that as a crypto dealer, come and take your money and shut your account.
“The implications of this bitcoin policy on dealers of cryptocurrency is that they will not make withdrawals of money in banks when a payment is created using cryptocurrency in Nigeria.
“Also, the Cryptocurrency exchanges like Luno and also the rest will have to source other alternative means to form transactions and payments using cryptocurrencies.