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

[Cling18]

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

Also, banks would always say things like that with cryptocurrency because they see it as their competitor. However, things will still depend on how we deal with it. Despite the negative accusations that banks might throw about cryptocurrency, it still depends on how we trust it.

[Spaffin]

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

Also, banks would always say things like that with cryptocurrency because they see it as their competitor. However, things will still depend on how we deal with it. Despite the negative accusations that banks might throw about cryptocurrency, it still depends on how we trust it.

Many bankers are negative about cryptocurrency, but I am more confident that among their secret capital there is a certain amount of cryptocurrency. They also understand the irreversibility of the process, but at the same time they do not want to recognize this public.

[Yatsan]

It is just their own perspective and opinion towards Bitcoin so no point to argue for we all do have different ways on how we perceive things depending on the way we see it and understand how does it work. It is just a sort of mental discrepancy that differs the way we see things compared to other people. If that is what they believe, then let it be. As long as you do know what is the real thing about Bitcoin, so be it. No need to argue on things all over again. Let them believe what they wanted to believe because we know on ourselves how Bitcoin works on our lives and our perception is based on what we have experienced upon engaging into it.

[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.

As if the Nigerian Government has ever done or ever have the good intention for doing any thing good that while positively affects the citizens. I strongly believe that even the due diligence that they said would be done in understanding what and how the technology works is just a scam and they will never have any good intention to OK any thing that the citizens will benefit from. 

I probably understand where you're coming from. We, third world country citizens especially, are full of frustrations and disappointments of our respective governments to the point that we question whether they still have even a little good intention left for their countrymen. But I probably won't completely rule out that perhaps some of them are in fact trying to do good in their government service. It's just that corruption, hypocrisy, and so on are extremely rampant.

On the other hand, let the voice of the people be heard. I mean, if the strong demand for Bitcoin or crypto is there from all sides of the population, for sure even the government would notice and truly consider. I think it's just a matter of time before they will realize that the entire world is actually starting to get friendly with Bitcoin.

[Sithara007]

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

Also, banks would always say things like that with cryptocurrency because they see it as their competitor. However, things will still depend on how we deal with it. Despite the negative accusations that banks might throw about cryptocurrency, it still depends on how we trust it.

Nowadays Bitcoin is not widely being used for making payments, and therefore there is no reason for the banks to think that it is a competitor. If that was the cases, then corporations such as PayPal and Mastercard would have never integrated Bitcoin to their platforms. These corporations have realized that association with Bitcoin can be mutually beneficial for both sides. For the banks also, that should be the case. But if they believe that they can stop people using cryptocurrency just by closing down their banking accounts, then it is a wrong assumption.

[jaberwock]

I don't think their opinion is negative because most countries in the world don't accept crypto, although this situation has improved over the years as crypto offers value and economy for users and countries but apart from these positive benefits, fraud and illegal issues also revolve around crypto a lot, and the key to this story is deadlocked when the security of crypto is too great. If crypto is considered as legal currency, this situation will be more serious, governments of countries are never negative, they just want to protect their people

It is obvious that bankers will say negative things about crypto as long as they are outside of it and they will start saying positive things when they are in it, their talk is not repetitive of what they think, it is all about what will make them more money.

When they are out of it, they will say bad things because they are not making any money and on top of that losing money because of it so they will of course say that it is horrible even if they like it a lot themselves, and when they are in it they will say that it is awesome because crypto being higher will make them more money so they will promote it even if they start to think it's bad. This is why when there is a subjective opinion based on crypto it means absolutely nothing, but when someone powerful who can ban crypto says this would mean that crypto is doing bad in that nation for being banned.

[angrynerd88]

They gave a flag that Cryptocurrency has no put in their framework was the explanation given right which implies they don't need their individuals to urge such opportunity so presently the choice is on the hands of people whether they need their futile notes which is able gotten to be worthless in following few a long time or need cryptocurrency which is able be future cash of the globe and it willbe require of populace to utilize crypto as medium of trade.

[mezzaluna]

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. 

This is really unexpected from them because its like they are telling an obvious lie. They are trying to ban it because some users within their country is profiting from something they know. The users within that country has already used their Cryptocurrencies to be converted into Nigerian naria and if Cryptocurrency is not real money then how come some users were able to use it before the time of banning them. Its a digital asset which everybody can benefit from once they know how to utilize it.

[eaLiTy]

This is really unexpected from them because its like they are telling an obvious lie. They are trying to ban it because some users within their country is profiting from something they know.

Why do you think it was unexpected, anyone country who is try to come out with some form of restrictions or regulations will not accept BTCitcoin as legal tender in their country and it is not a big surprise and if they do that they there will be a huge inflow of money flowing into a decentralized market and they will not have any control over it. So do not expect any government to call BTCitcoin as a legal tender or money and it has nothing to do with the profits you can make, it is an entirely different thing altogether.

[lalabotax]

I am wondering, so in Nigeria, there are still debates or disagreements and views regarding whether or not cryptocurrency is legitimate, right?
In this case, how will crypto exist in the country? Are there still many enthusiasts who are still in the crypto world? And what about the real legal umbrella? I've heard that they banned from crypto.

[Kong Hey Pakboy]

In a way he is right because cryptocurrency doesn't have that much legal standing in many countries and the only way to become one is if the government recognizes and considers cryptocurrency as a legal tender which is difficult because cryptocurrency is supposed to be a decentralized financial tool which is in direct conflict of centralized financial institutions.

[CaVO32]

I don't think their opinion is negative because most countries in the world don't accept crypto, although this situation has improved over the years as crypto offers value and economy for users and countries but apart from these positive benefits, fraud and illegal issues also revolve around crypto a lot, and the key to this story is deadlocked when the security of crypto is too great. If crypto is considered as legal currency, this situation will be more serious, governments of countries are never negative, they just want to protect their people

It is obvious that bankers will say negative things about crypto as long as they are outside of it and they will start saying positive things when they are in it, their talk is not repetitive of what they think, it is all about what will make them more money.

When they are out of it, they will say bad things because they are not making any money and on top of that losing money because of it so they will of course say that it is horrible even if they like it a lot themselves, and when they are in it they will say that it is awesome because crypto being higher will make them more money so they will promote it even if they start to think it's bad. This is why when there is a subjective opinion based on crypto it means absolutely nothing, but when someone powerful who can ban crypto says this would mean that crypto is doing bad in that nation for being banned.

I believe it is only a matter of time before he changed his perspectives towards crypto. Right now, maybe he doesn't even know how transact using bitcoin but once he get acquainted himself with crypto or btc itself, I believe he will change his mind and appreciate its technology. But for now, he is saying what is in his mind. They can say whatever they want, but crypto users know if this is real money or not. And being legitimate depends on the country right now. If the country is legally accepting crypto, then we can say it is legitimate. But if the country is banning the use of crypto, then it is illegal, right?

[wxa7115]

I absolutely do not support such restrictive measures against cryptocurrencies, but I perfectly understand the logic of such actions. It turns out that the Nigerian government sensibly assesses the possibilities of its national fiat currency and therefore are not going to arrange any competition between fiat currencies and cryptocurrencies. Let's be frank that the banking sector is not quite adapted for this and for many authorities there is a temptation to go the simplest way of prohibitions, rather than to find ways of interaction. Therefore, I am sure that these are all temporary phenomena and in the future, cryptocurrencies and fiat currencies will calmly get along in the same Nigeria.

Governments and central banks have had a monopoly on currencies for a long time, and like any monopoly they do not want to adapt they are trying to crush the competition with all what they have, but like it has happened many times in history the best product and service will win in the end and without a doubt bitcoin is better.

They were so dominant that they thought their position was never going to be challenged, this is a historical mistake that some of the most powerful monopolies have made and it always ends up in the same way, with the monopoly disappearing.

[LUCKMCFLY]

We do not know if the Nigerian government actually has cryptocurrencies and bitcoin, perhaps it disqualifies Bitcoin because it does not want its people to emerge towards a totally deflationary economy and achieve their financial freedom, in every government it is convenient for them to have total and absolute control of each economic movement, if cryptocurrencies enter they will see it as money laundering, then it is not appropriate and if a country that has inflation problems is unsustainable, I see it from that point of view, perhaps it is wrong, but it is simply a assumption that it can be real, and that is why it disqualifies it, the more ignorance it is sown, for them the better.

[wxa7115]

As if the Nigerian Government has ever done or ever have the good intention for doing any thing good that while positively affects the citizens. I strongly believe that even the due diligence that they said would be done in understanding what and how the technology works is just a scam and they will never have any good intention to OK any thing that the citizens will benefit from. 

Given the corruption and nepotism that is prevalent in the third world nations such as Nigeria, why are you even surprised? All they care about is how to increase the tax revenue. They don't really bother whether the citizens are benefitting from it or not. I am from India and here also the government's approach towards cryptocurrency is the same. They are worried that they can't tax cryptocurrency transactions.

If that is what all they are worried about then that is fine, it seems they do not understand that bitcoin is not this mysterious money that few understand, people are going to begin to use it instead of fiat currencies in the future, forget about taxes their printed currencies will begin to lose value as people understand that they have been part of the biggest scam in the history of the world and that it was perpetrated and perpetuated by governments.

In a way I get why they are worried, their monopoly is being threatened and they have no way to defend it except by trying to make people to not use bitcoin and they are realizing this is not going to work.

[AndySt]

We do not know if the Nigerian government actually has cryptocurrencies and bitcoin, perhaps it disqualifies Bitcoin because it does not want its people to emerge towards a totally deflationary economy and achieve their financial freedom, in every government it is convenient for them to have total and absolute control of each economic movement, if cryptocurrencies enter they will see it as money laundering, then it is not appropriate and if a country that has inflation problems is unsustainable, I see it from that point of view, perhaps it is wrong, but it is simply a assumption that it can be real, and that is why it disqualifies it, the more ignorance it is sown, for them the better.

I think that the main role here is played by concerns about the impact of bitcoin on the monetary policy of the state through the central bank. The financial authorities of the vast majority of countries in the world have already formed effective tools for monetary policy over the years, and therefore are very wary of new things like bitcoin. Therefore, some confidence on the part of such structures will be present, but the most important thing is that this does not lead to prohibitive measures.

[gatti]

We do not know if the Nigerian government actually has cryptocurrencies and bitcoin, perhaps it disqualifies Bitcoin because it does not want its people to emerge towards a totally deflationary economy and achieve their financial freedom, in every government it is convenient for them to have total and absolute control of each economic movement, if cryptocurrencies enter they will see it as money laundering, then it is not appropriate and if a country that has inflation problems is unsustainable, I see it from that point of view, perhaps it is wrong, but it is simply a assumption that it can be real, and that is why it disqualifies it, the more ignorance it is sown, for them the better.

I think that the main role here is played by concerns about the impact of bitcoin on the monetary policy of the state through the central bank. The financial authorities of the vast majority of countries in the world have already formed effective tools for monetary policy over the years, and therefore are very wary of new things like bitcoin. Therefore, some confidence on the part of such structures will be present, but the most important thing is that this does not lead to prohibitive measures.

The Central Bank of Nigeria believes the recent ban on digital currencies was in the best interest of the public. Speaking during a recent Senate hearing, the CBN governor Godwin Emefiele further claimed that digital currencies are not legitimate money.CBN issued a circular two weeks ago that prohibited all banks from processing digital currency-related transactions. In its circular, it ordered banks to identify individuals and firms dealing in digital currencies and shut down their accounts.

[hahay]

If they link it about currency then the reason for the ban I think is acceptable, because even in my country even though crypto is legal but still, it is only legal in terms of assets and trading and not about currency. With this difference in view, I think the central bank of Nigeria can still accept the policy on an asset because after all, the real use of cryptocurrency itself is still not widely practiced. Therefore, I think letting citizens trade and hold cryptocurrency, I think it will be fine and it will not destroy the economy.

[Finestream]

If they link it about currency then the reason for the ban I think is acceptable, because even in my country even though crypto is legal but still, it is only legal in terms of assets and trading and not about currency. With this difference in view, I think the central bank of Nigeria can still accept the policy on an asset because after all, the real use of cryptocurrency itself is still not widely practiced. Therefore, I think letting citizens trade and hold cryptocurrency, I think it will be fine and it will not destroy the economy.

We all have different government policies anyways. But seeing CNB has banned cryptocurrency transactions, they don't still have the control if the citizens continue to trade and invest in crypto because crypto itself is decentralized. For me, it still makes no difference i guess.

[finaleshot2016]

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. 

Maybe they're just not open to crypto opportunities and don't want to support it because they have different agenda. That's the main reason why they're banning it or saying that it's not legitimate money because they can't do anything on a decentralized asset, people still have the ability to buy and sell whenever they want. As we know that crypto has a huge effect on the economy especially if mass adaptation has occurred in Nigeria, it'll be out of control and it's normal for some countries to have regulations on cryptocurrency.