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Senate summons CBN gov over ban on crypto currencies

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Senate summons CBN gov over ban on crypto currencies
Senate has resolved to invite the Central Bank of Nigeria, CBN Governor, Mr. Godwin Emefiele and the Director General of the Securities and Exchange Commission, SEC, Mr. Lamido Yuguda for briefing  on the opportunities and threats of the Crypto currency on the nation’s economy and security following the apex bank’s recent directive stopping all financial institutions from transacting in Crypto currencies.
 
They are to appear before the joint Committees on Banking, Insurance and other Financial Institutions; ICT and Cybercrime; and Capital Market, chaired by Senators Uba Sani (APC Kaduna Central), Yakubu Oseni (APC Kogi East) and Ibikunle Amosun (APC Ogun Central), respectively who are to report back findings within two weeks.
The resolution was sequel to a motion, “CBN’s decision to stop Financial Institutions from transacting in Crypto currencies and matters arising therefrom” jointly sponsored by Senators Istifanus Gyang (PDP Plateau North) and Adetokunbo Abiru (APC Lagos East).

Presenting the motion, Senator Gyang noted that the CBN took the decision and following its earlier directives in January 2017 and February 2018 which forbade banks not to use, hold, trade and/or transact in Crypto currencies.

He said the action and directive of the CBN has attracted sharp reactions from Nigerians and has become a topical subject of national discuss.
According to him, “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.”
He, however, added that “the decision of the CBN is said to have been predicated on the need to safeguard the Nigerian economy from the adverse effects of the Crypto currency regime which are unregulated digital or virtual currencies that are issued by anonymous entities and secured by cryptography.”
Contributing to the motion, Senator Biodun  Olujumi (PDP Ekiti South) said Nigeria did not create crypto currency and therefore could not possibly kill its operation.
She  said Nigeria should not exclude  itself from global  technological  developments shaping the world.
“We can regulate and manage crypto currency transactions in Nigeria,we can not kill, it because some of our youths are working hard and doing great in technology.”
Also, Senator Solomon Adeola (APC Lagos West) said the CBN’s ban on crypto currency was shying away from its oversight duties .
He said it was important to invite the CBN governor to find out the regulations put in place to  regulate the activities of those operating in crypto currency in Nigeria.
Adeola said all over the world the activities of crypto currency operators are regulated.
In his remarks, the Senate President, Dr.Ahmad Lawan, said that the CBN needs to educate Nigerians  the more  on the issues revolving crypto currency transactions in Nigeria  especially as  to how it impacts the  economy and security.
He said the Senate wants to be briefed  to have more information and be guided on next line of action, noting that the motion may not be the last on crypto currency as the issues are still developing.
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