The Senate on Thursday, summoned the Governor of Central Bank of Nigeria, Godwin Emefiele, and Director General of the Security and Exchange Commission, Lamido Yuguda, over the decision of the CBN to ban the use of cryptocurrency in the country.
The decision was taken following a motion by Senator Istifanus Gyang and Tokunbo Abiru, titled, “CBN decision to stop financial institutions from transacting in cryptocurrencies and matters arising therefrom.”
The Senate asked its committees on Banking, Insurance, and other financial institutions, Capital Market, and that of ICT and cybercrime to summon Emefiele and Yuguda.
The CBN governor and DG SEC are expected to brief the panels on the opportunities and threats of the cryptocurrency on the nation’s economy.
The Senate President, Ahmad Lawan, asked the joint committees to listen to Emefiele and Yuguda, and submit their report for the consideration of the Senate in plenary within two weeks.
Leading the debate on the issue, Gyang noted that the CBN issued a directive stopping all financial institutions from transacting in cryptocurrencies.
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He said the CBN decision was a follow up to its earlier directives in January 2017 and February 2018 which forbade banks not to use, hold, trade and/or transact in cryptocurrencies.
He further noted that the decision of the CBN was said to have been predicated on the need to safeguard the Nigerian economy from the adverse effects of the Cryptocurrency regime which are unregulated digital or virtual currencies that are issued by anonymous entities and secured by cryptography.
The decision was taken following a motion by Senator Istifanus Gyang and Tokunbo Abiru, titled, “CBN decision to stop financial institutions from transacting in cryptocurrencies and matters arising therefrom.”
The Senate asked its committees on Banking, Insurance, and other financial institutions, Capital Market, and that of ICT and cybercrime to summon Emefiele and Yuguda.
The CBN governor and DG SEC are expected to brief the panels on the opportunities and threats of the cryptocurrency on the nation’s economy.
The Senate President, Ahmad Lawan, asked the joint committees to listen to Emefiele and Yuguda, and submit their report for the consideration of the Senate in plenary within two weeks.
Leading the debate on the issue, Gyang noted that the CBN issued a directive stopping all financial institutions from transacting in cryptocurrencies.
He said the CBN decision was a follow up to its earlier directives in January 2017 and February 2018 which forbade banks not to use, hold, trade and/or transact in cryptocurrencies.
He further noted that the decision of the CBN was said to have been predicated on the need to safeguard the Nigerian economy from the adverse effects of the Cryptocurrency regime which are unregulated digital or virtual currencies that are issued by anonymous entities and secured by cryptography.
He observed that cryptography is a “method of encrypting and hiding codes that prevent oversight, accountability and regulation upon which the CBN says its use in Nigeria violates and contravenes existing law as only the CBN is authorized by law to issue legal tender.
He added: “Concerned that Crypto currency by nature is anchored on anonymity, obscurity and concealment of its patrons and actors making it difficult, if not impossible, to trace, track and uncover those that may deploy it for ignoble and illegal usage such as money laundering, terrorism financing, drug purchase, cybercrime, etc.
“Aware that the action and directive of the CBN has attracted sharp reactions from Nigerians and has become a topical subject of national discuss; and
“Realized that Crypto currency is both an opportunity and a threat, hence the Senate has a responsibility to ensure that the nation and citizens do not miss out on the opportunities that Crypto currency offers and in the same vein, mitigate and prevent likely consequential effects on the nation’s economy and security.”
Senators in their contribution supported the motion.
Senators approved the only prayer of the motion when it was put to voice vote by Senate President Ahmad Lawan.
The joint committee was given two weeks to report back to plenary by the Senate President.
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