'Cryptocurrency is not legitimate money,' says Nigeria's central bank governor

[Charles-Tim]

Godwin Emefiele, governor of the Central Bank of Nigeria, has defended the apex bank’s decision to ban banks from servicing cryptocurrency exchanges in the country. Appearing before a joint Senate Committee on Banking, Insurance and Other Financial Institutions; ICT and Cybercrime; and Capital Market, Emefiele remarked that the CBN ban was in the best interest of Nigerians.

According to a report by media outlet Punch, while addressing the Senate committee, Emefiele remarked: “Cryptocurrency is not legitimate money. Cryptocurrency has no place in our monetary system at this time and cryptocurrency transactions should not be carried out through the Nigerian banking system.”
The CBN governor also reiterated that despite the ban, the central bank was doing its due diligence to better under the emerging digital asset space.

The CBN governor also reiterated that despite the ban, the central bank was doing its due diligence to better under the emerging digital asset space.

Nigeria SEC in support of cryptocurrencies while CBN not in support, p2p has been the best though, no bank charges and no conversion charges. 

[macson]

banker again!!  well...they will keep thinking that way.  in my old post, I once posted a picture that writes "if you want a truth: Don't ask a Banker about Bitcoin"

who can and has the right to legitimate a decentralized asset?  Bitcoin is a decentralized asset created by humans and for humans so without the supporting government, Bitcoin will continue to exist.  I wonder how long he will continue to chuckle at this belief!

[paxmao]

As usual, too many people are just missing the point out there. It is only for the community to decide if Bitcoin is legitimate.

[Quidat]

banker again!!  well...they will keep thinking that way.  in my old post, I once posted a picture that writes "if you want a truth: Don't ask a Banker about Bitcoin"

who can and has the right to legitimate a decentralized asset?  Bitcoin is a decentralized asset created by humans and for humans so without the supporting government, Bitcoin will continue to exist.  I wonder how long he will continue to chuckle at this belief!

You got the solid point on where people who do know about Bitcoin existence and other crypto which do really talks about decentralization which does simply or basically
means that no one could able to control it out but we cant really deny that government could really still be a pain in the ass when they do decide up things when it comes
on getting involvement through regulation aspect which would really be somewhat able to be a headache.

As usual these kind of sentiments came from traditional government and investors arent something new to be shocked on.

[Twinkledoe]

banker again!!  well...they will keep thinking that way.  in my old post, I once posted a picture that writes "if you want a truth: Don't ask a Banker about Bitcoin"

who can and has the right to legitimate a decentralized asset?  Bitcoin is a decentralized asset created by humans and for humans so without the supporting government, Bitcoin will continue to exist.  I wonder how long he will continue to chuckle at this belief!

You got the solid point on where people who do know about Bitcoin existence and other crypto which do really talks about decentralization which does simply or basically
means that no one could able to control it out but we cant really deny that government could really still be a pain in the ass when they do decide up things when it comes
on getting involvement through regulation aspect which would really be somewhat able to be a headache.

As usual these kind of sentiments came from traditional government and investors arent something new to be shocked on.

These bankers want to protect their interest, so they will say things not in favor with cryptocurrencies. But people are not dumb anymore, we are not bound by their rules. We can now think of what to do with our funds without these people. In time, they will also join this market, as many people are starting to adopt crypto.

[wxa7115]

These bankers want to protect their interest, so they will say things not in favor with cryptocurrencies. But people are not dumb anymore, we are not bound by their rules. We can now think of what to do with our funds without these people. In time, they will also join this market, as many people are starting to adopt crypto.

What I find funny is how circular their logic really is, they say that bitcoin is not legitimate money, but according to who? To them of course! So basically since they do not like cryptocurrencies since they compete against them then they have decided that it is not legitimate money, despite the fact that bitcoin has all the characteristics that you may wish out of money, that people trust it, and that they have for the most part obtained those cryptocurrencies in a legitimate way.

This is why we should disregard the opinions of governments, they are biased and they will always try to defend their fiat currencies no matter what despite the evidence that bitcoin is way better, so with this in mind I have no doubts that those that want to exchange or acquire bitcoin in Nigeria will just ignore the government and continue with their activities despite the protests of the government.

[Rengga Jati]

-snip-

So it means that as long as the transaction is not via bank, it is no problem, right?
And using P2P is probably a good decision, but also, it needs careful decision to choose the right and trusted P2P.

Well, actually maybe it seems like in my country, cryptocurrency is also not legal as money or used for payment method. However, it is legal as a commodity or digital asset. We, as a society can trade or invest in cryptocurrency (cash out through bank is also available) but we are under our own risks and must do our research and smart investing or trading.
But if we use it for payment (for example paying some goods or services in merchants by using crypto) is forbidden and illegal.

But the good thing is that:

The CBN governor also reiterated that despite the ban, the central bank was doing its due diligence to better under the emerging digital asset space.

[Darker45]

Isn't it a bit premature for the CBN governor, Godwin Emefiele, to issue such statements when the central bank is still on the process of doing due diligence?

Or is everything merely temporary pending the final result of their study? After all, the governor is clear that all this is for the time being only. So the ban is just some sort of a prevention mechanism since the central bank is still trying to understand the emerging technology. Once everything has been thoroughly discussed and understood, the ban would either be lifted or continued to be implemented.

I can only hope that part of their objective due diligence process is to invite crypto experts as well as other crypto stakeholders so that they would come up with a comprehensive understanding of cryptocurrency.

[uneng]

It doesn't look smart to badmouth and ban bitcoin to save a priceless national currency. At this point venezuelan dictatorship is smarter than nigerian rulers, as it seems the government is turning a blind eye to bitcoin usage there. That is because they know bitcoin adoption helps citizens to not fall totally on poverty, so they are able to keep the economy working somehow and generating taxes for the government.
In Nigeria the authorities could do the same. Let people use bitcoin as they want and the government will be benefited in the end with people buying more and consequently paying more taxes.

[bryant.coleman]

As usual, too many people are just missing the point out there. It is only for the community to decide if Bitcoin is legitimate.

Agreed. Those who use cryptocurrency will decide whether it is legitimate or not. Those shops which accept cryptocurrency will decide whether it is legitimate or not. People who don't understand the concept of cryptocurrency, such as this illiterate guy (Godwin Emefiele) should concentrate on his main business of printing banknotes without any limit and worsening the monetary inflation issue.

[shoreno]

according to their qoute they say " Cryptocurrency has no place in our monetary system at this time "  at that time only so they mean that there was a still a chance for crypto to be a part of thier monetary system in the near future if ever they will change their minds and accept crypto .

Nigeria SEC in support of cryptocurrencies while CBN not in support, p2p has been the best though, no bank charges and no conversion charges.  

that is strange where crypto has still a complicated status despite of sec already legalized and accept it because i think sec is more powerful than a bank but thats still okay if they allow p2p trades , indeed p2p trades are more cooler and it was the original .

[iamsheikhadil]

I'm quite sure that these type of people and politicians and those who are in power are quite illiterate about not only how crypto and economy works, but even the most basic and fundamentals of their own sector to which they have been charged to look into through elections. These anti-technology mindset is really very lethal in case of developing nations because the world is evolving with technology, and not adapting with it can lead to backwardness and missing out on opportunities for common people and investors.

[mersal]

Cryptocurrency has no place in their system was the statement given right which means they don't want their people to get such freedom so now the decision is on the hands of people whether they want their useless paper Money which will become valueless in next few years or want cryptocurrency which will be valued 100x times in the next few years.

[davis196]

Gold is not legitimate money as well,and Bitcon is considered "digital gold".
Will the Nigerian central bank ban gold transactions?
This is the typical mentality of a central banker.Legitimate money are the fiat money,issued by the central bank,everything else is not legitimate money.
I guess that the majority of cryptocurrency users in Nigeria couldn't care less about the opinions of this guy,or the anti-crypto legislation and regulations.The crypto industry in Nigeria will flourish,with or without the government support or oppression.

[macson]

banker again!!  well...they will keep thinking that way.  in my old post, I once posted a picture that writes "if you want a truth: Don't ask a Banker about Bitcoin"

who can and has the right to legitimate a decentralized asset?  Bitcoin is a decentralized asset created by humans and for humans so without the supporting government, Bitcoin will continue to exist.  I wonder how long he will continue to chuckle at this belief!

You got the solid point on where people who do know about Bitcoin existence and other crypto which do really talks about decentralization which does simply or basically
means that no one could able to control it out but we cant really deny that government could really still be a pain in the ass when they do decide up things when it comes
on getting involvement through regulation aspect which would really be somewhat able to be a headache.

As usual these kind of sentiments came from traditional government and investors arent something new to be shocked on.

the doctrine embedded in their brain is the old doctrine (money must be physical) The world is changing very fast but why are they moving slowly?  all this time they acted as rule lockers and felt they were "the rules themselves".

the bullshit they put out is always "Bitcoin is used for crime".  I just thought "they are hypocrites who are full of corruption who are afraid to live in the age of blockchain technology".

[maybukaspa]

CBN could've just done something better to tackle their suspicions instead of banning it. If CBN continues to take defensive approaches, it will certainly never work in the long term. Also, I see no valid reason to ban crypto in Nigeria. Are they just out of ideas about how to handle this issue strategically?

It seems like the Nigerian government doesn't want their people to make money from crypto. Besides, people will always find their way for solutions.

[Karartma1]

When people see bitcoin as a tool to liberate themselves from the rat race and preserve some wealth from the government prying eyes, I wish the best of luck to these Nigerian institutions to find a way to stop the super-massive adoption we are witnessing in countries like Nigeria.
Yellen, in the States, got some similar stance on bitcoin and it looks me they're only barking since there are plenty of legitimate businesses that are based on bitcoin and which pay taxes regularly.
There's a whole economy building up behind the scenes and I'm curious to know if they truly want to stifle these innovations.

[hugeblack]

What do you expect from the central bank, do you want them to buy bitcoin or do you want them to get citizens to buy more bitcoin?
Buying more Bitcoin is losing the central bank's ability to control inflation and the monetary mass.
The best thing that can be obtained is legislation to track Bitcoin and control taxes, which requires a strong banking system and a country capable of preventing tax evasion, which is not found in the case of Nigeria.

[meanwords]

I don't know what's going through their head but I think they're just denial at this point. I mean, they could just label cryptocurrency as an asset and profit from it since Nigerian users are adopting crypto like crazy, rather than staying away from it. But hey who am I to say this. At least crypto holders in Nigeria is having a blast since Bitcoin over there is over $60,000.

[Ucy]

You don't de-legitimize what a community choose to use as currency/money/token. It's already legitimate, it's just left for the bank to accept it.
I wonder what they will say to people who decide to start using or getting paid in stones, precious metals, rice, beans, bread, etc. Would he tell the people that what they choose to get paid with is "not legitimate"? By the way, free people should decide what they get paid with as long as they are safe to use. They seem to be deciding for those who consider crypto safer and more moral than their fiat currencies.
They should ensure that people use cryptocurrency safely without abuse/misuse.