JUST IN: Atiku Faults CBN’s Ban On Cryptocurrency, Makes Recommendation

Former Nigerian vice president, Atiku Abubakar, has faulted the ban on cryptocurrency trading by the Central Bank of Nigeria (CBN), saying it may increase “economic pressure” already being experienced by youths. 

THE WHISTLER, on Friday, reported that the CBN had sent out a circular to money deposit banks in the country, directing them to close all accounts “dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges”. 

But reacting in a statement titled “We Need To Open Up Our Economy, Not Close It”, Atiku faulted the move and called on the CBN to reverse it. 

He wrote on Facebook: “The number one challenge facing Nigeria is youth unemployment. In fact, it is not a challenge, it is an emergency. It affects our economy and is exacerbating insecurity in the nation.

“What Nigeria needs now, perhaps more than ever, are jobs and an opening up of our economy, especially after yesterday’s report by the National Bureau of Statistics indicated that foreign capital inflow into Nigeria is at a four year low, having plummeted from $23.9 billion in 2019 to just $9.68 billion in 2020.

“Already, the nation suffered severe economic losses from the border closure and the effects of the #COVID19 pandemic. 

“This is definitely the wrong time to introduce policies that will restrict the inflow of capital into Nigeria, and I urge that the policy to prohibit the dealing and transaction of cryptocurrencies be revisited. 

Atiku further recommended that in order to “prevent any abuse that may be damaging to national security,” relevant government agencies regulate cryptocurrency trading by Nigerians. 

He stressed that, “That may be a better option, than an outright shutdown.  

“There is already immense economic pressure on our youths. It must be the job of the government, therefore, to reduce that pressure, rather than adding to it. 

“We must create jobs in Nigeria. We must expand the economy. We must remove every impediment towards investments. We owe the Nigerian people that much.” 

THE WHISTLER recalls that the CBN ban on cryptocurrency trading came about three years after the Nigeria Security and Exchange Commission (SEC) said it would regulate trading of digital assets like cryptocyrrency in the country. 

Meanwhile, a 2018 research conducted by multinational law firm, Baker McKenzie, had shown that Nigeria ranked number three in the world for countries trading in Bitcoins. 

Bitcoin is the most popular type of cryptocurrency , followed by Ethereum, Ripple XRP, Litecoin, NEO, and IOTA, amongst others.