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How Everyone is Reacting to CBN Governor Godwin Emefiele’s Briefing on Cryptocurrency

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Earlier this year, The Central Bank of Nigeria released a statement prohibiting financial institutions in Nigeria from dealing in cryptocurrencies or facilitating payments for cryptocurrency exchange.

The use of bitcoins and cryptocurrencies in Nigeria skyrocketed in 2020, especially during the #EndSARS protests when bank accounts of activists like the Feminist Coalition were blocked and other payment platforms for freelancers were banned.

This made the disbursement of funds difficult, therefore leading many youths to rely on the use of bitcoins and cryptocurrencies. At the time of the ban, the reason for the action was not made known and a lot of Nigerians did not hesitate to express their disapproval.

The Governor of the Central Bank of Nigeria Godwin Emefiele has now appeared before the joint Senate Committee on Banking, Insurance, ICT, Cybercrime and Capital Market to discuss cryptocurrencies and the reason for its ban.

Defining cryptocurrency, the CBN governor stated, “cryptocurrency which is the main thrust of our sitting this afternoon is generally regarded as an electronic or digital currency that is issued by largely unknown, unregulated elements using computer codes that are basically meant to encrypt or hide information about both the transactions and the operators. And in a sense, it is money that is created out of thin air.”

“Cryptocurrency is not legitimate money. Cryptocurrency has no place in our monetary system at this time and cryptocurrency transactions should not be carried out through the Nigerian banking system,” Emefiele added and also said that “It is used to describe the activities of players in an electronic dark world, where transactions are extremely opaque. They’re black. They’re not white, they’re not visible and they’re not transparent. These are people who deal in transactions that not only do not want a trail but indeed by its nature cannot be trailed.”

“These definitions alone are scary enough to create anxiety for any regulator or central bank or fed in any part of the world and that is the reason virtually all regulators in the world do not recognize it,” Emefiele told the committee.

Watch the video below:

Nigerians have once again taken to social media to express their disagreement with the CBN Governor’s opinion on cryptocurrencies. While some people are more concerned that the CBN Governor had to read from a ‘script’ to explain cryptocurrency, others think that he “doesn’t fully understand the concept of money and how it has evolved over the years,” especially as he stated that cryptocurrency is money that is created out of thin air. 

According to one Twitter user by the handle @heisizumicheals, “From BARTER to GOLD, to PAPER BILL, to GOLD STANDARD, BRETTON WOODS & to END OF GOLD STANDARD. That’s the history of money. The paper money isn’t up to 60yrs old while Cryptocurrency is next But the CBN Governor, Emefiele talks like he never knew that money changes with time.”

See how everyone is reacting to Emefiele’s briefing below:

1 Comment

  1. by_stander

    February 25, 2021 at 5:45 pm

    When I told you that all of the problem of Nigeria starts with Lawyers and Accountants you people didnt listen.

    This man fails to acknowledge his own illiteracy and lack of knowledge and as a result he is ready to make the whole country suffer for it.

    Even look at how he is using the word “black” in an African country, if a white man made that speech they will say he is racist.

    Anyways its people that have time that still listen to these dinosaurs. I even saw a comment from one idiot (whether fake or real) saying she will not buy until CBN approves it and am just thinking wow, some people should never be allowed to buy crypto, ever.

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