The Central Bank of Nigeria has said that it will present a regulatory policy framework for the implementation of cryptocurrencies in the country.
He revealed this in a report on ‘Nigeria Payments System Vision 2025’.
The banking regulator had previously banned crypto-related transactions in the banking system.
“CBN would consider developing a regulatory framework for the potential implementation of ‘Stablecoins,” CBN revealed.
Meanwhile, the economists who spoke with the punch criticized the main bank’s consideration of the stablecoin as ill-timed, considering the failure of the e-naira.
The bank added that it would “also continue its watchdog report on initial coin offerings and work with the Securities and Exchange Commission to jointly develop a regulatory framework in the event of adoption of an ICO-based investment solution.”
According to InvestopediaStablecoins are cryptocurrencies whose value is tied to that of another currency, commodity, or financial instrument, providing an alternative to the high volatility of the most popular cryptocurrencies, including Bitcoin, which has made cryptocurrency investments less suitable for transactions. common. .
Remember that CBN had banned cryptocurrency-related transactions in the country while claiming that the digital currency was used for money laundering and terrorism.
The statement from CBN’s acting director of Corporate Communications, Osita Nwanisobi, said that a ban on such transactions would not have any negative impact on fintechs.
He said: “The use of cryptocurrencies in Nigeria is in direct contravention of existing law.
“It is also important to note that there is a critical difference between a central bank-issued digital currency and cryptocurrencies.
“As the name implies, while central banks can issue digital currencies, cryptocurrencies are issued by unknown and unregulated entities.
“The question one may need to ask, therefore, is why any entity would disguise its transactions if they were legal.”
Talking with the punch On Wednesday, an economics and capital markets analyst, Rotimi Fakayejo, said the policy, if implemented, would not have a significant impact on the economy, noting that it was at the wrong time.
He said: “We have tried e-naira and it is not working. I don’t think CBN is thinking straight. We all know how weak regulations can be in this country.
“The naira is not stable and the instability and scarcity of currencies. I see no reason why they would choose to implement such a policy.”
Wole Adeyeye, investment and capital markets analyst, said the punch that it was necessary to establish adequate regulations before applying such policies.
