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Don't Blame The CBN For Banning Cryptocurrency, Checkout Some Of The Crucial Reasons

Many people on social media have started reacting to the recent circular by the Central Bank of Nigeria which reiterated the ban on cryptocurrency exchanges in the country. However, while many people are showing displeasure in this announcement, there are some crucial reasons why the CBN shouldn't be blamed for this decision.

Firstly, the Nigerian Central Bank made known in January 2017, that digital currency such as Bitcoin, Litecoin and others are largely used in terrorism financing and money laundering. This is one of the major reasons why CBN is yet to approve cryptocurrency as a legal tender.

Secondly, as the use of cryptocurrency booms in Nigeria and Africa at large, the number of crypto scammers is also increasing. A report by whale Alert in 2020 revealed that scammers stole over $24 million worth of Bitcoin from victims in the first six months of 2020.

The anonymity of virtual transaction makes it difficult for fraud and illegal activities to be traced. Considering the rate at which many Nigerian youths are investing and trading in cryptocurrency, the action of CBN will help financial bodies to identify and trace any fraudulent activities.

Although, cryptocurrency is now globally accepted and has the potential of becoming legal tender in many countries, yet, the Central Bank's decision shouldn't be consider as unnecessary due to the level of terrorism, kidnapping and fraudulent activities that is challenging the country at such a time as this.

We can only be hopeful that the apex bank will adjust her decisions in order to meet up with global advancement in the nearest future.

What do you think about this issue?

Content created and supplied by: Desfillje (via Opera News )

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