The Central of Bank of Nigeria’s (CBN) has revealed why cryptocurrency transactions were banned in Nigeria.
According to the apex bank, cryptocurrency is used for money laundering and terrorism.
The CBN) had last week sent out a directive shutting down cryptocurrency exchange bank accounts, a move that led to widespread criticism on social media.
In a statement on Sunday, February 7, Osita Nwanisobi, Acting Director, Corporate Communications, clarified that that the CBN circular of February 5, 2021 did not place any new restrictions on cryptocurrencies.
“The use of cryptocurrencies in Nigeria are a direct contravention of existing law. It is also important to highlight that there is a critical difference between a Central Bank issued Digital Currency and cryptocurrencies. As the names imply, while Central Banks can issue Digital Currencies, cryptocurrencies are issued by unknown and unregulated entities.