BY LINUS CHIBUIKE
THE Senate, on Thursday, summoned the Governor of the Central Bank of Nigeria, Godwin Emefiele, and Director-General, Securities and Exchange Commission, Lamido Yuguda, over the ban on cryptocurrency operations in Nigeria.
The Senate Committees on Banking, Insurance and other Financial Institutions, ICT and Cubercrime, and Capital Market, were asked to invite the CBN boss and SEC DG after a motion by Senator Istifanus Gyang (Plateau North) and Senator Tokunbo Abiru (Lagos East) was considered.
The motion was titled, “CBN’s decision to stop financial institutions from transacting in cryptocurrencies and matters arising therefrom.”
Gyang, who led the discussions, acknowledged the reasons offered by the CBN for the ban on cryptocurrencies, saying that it followed an earlier directive to the banks, in January 2017 and February 2018, which warned banks not to use, hold, trade and/or transact in cryptocurrencies.
He, however, noted that there were also opportunities in cryptocurrencies amid the threats of the unregulated digital or virtual currencies that are issued by anonymous entities and secured by cryptography.
Cryptography, Gyang said, was a method of encrypting and hiding codes that prevent oversight, accountability and regulation.
Its use in Nigeria therefore violates and contravenes existing laws since only the CBN is authorised by law to issue legal tender, according to him.
But the lawmaker noted that the Senate had the responsibility of ensuring that Nigerians did not miss out of the opportunities inherent in cryptocurrency operations, considering the heated debates that had followed the CBN’s action.
“Cryptocurrency 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 Cryptocurrency offers,” he said.
“In the same vein, the Senate intervention could mitigate and prevent likely consequential effects on the nation’s economy and security,” the senator added.
Senate President Ahmad Lawan asked the committees to listen to the CBN boss and SEC DG, when they honour the invitation, and submit their report for consideration in plenary within two weeks.
