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

[Vishnu.Reang]

The statement just shows the frustration of the central bank official. He realizes that the government can't do much, apart from issuing a banking ban on the trade of cryptocurrency. It is not possible to ban the ownership of crypto, since the wallets are not linked to anyone's identity. If they ban bank accounts from being used for the trade, then the P2P platforms will move to physical cash and other options. Apart from the retards in Indian government, no one in the world think that it is possible to ban cryptocurrency. So in due course of time, we will be hearing similar statements form officials all around the world. Janet Yellen of United States issued one a few days back.

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[Kakmakr]

Ok.... So let the same governor tell us why "legitimate Money" made them the most corrupt country in the world? I guess it is easier to launder money through the "legitimate Money" system, than trying to do that with a system where every transaction can be followed on a transparent Blockchain network/database. (Let's say the world Banking system switch to Bitcoin and they never used Mixer services, then the Blockchain would not make money laundering so easy...and that is a threat to Bankers)  

They do not want to allow an open and transparent Blockchain system, where their transactions can be traced and recorded... and they will much rather hide their "illegal" transactions in a private system that they control.    (Transfers to offshore accounts ..etc.)  

[so98nn]

A country who has not made enough progress in their own country and that’s why their currency is devalued over these years. Nigerian currency is so lower in value that even it is three digit in third world country like India. Lolz. Now the case of bitcoin:- The BTC itself is 5 digit currency and thus its almost impossible for them to buy single bitcoin or even 10 mBtc for that matter.

That’s why they are not risking their money with bitcoin and made such stringent statement about it. Also it does not matter if they get involve or not, we don’t have that much investors from Nigerian to influence crypto currencies.

[BIT-BENDER]

 Peer2peer has been the best so far for crypto-currency Nigerians before and after the ban, but it won't be too long before scammers in Nigeria realise the now importance of peer2peer for crypto-currency users and Bitcoiners and. Now start to steal or scam people in Nigeria and people are faster in learning easy money scams than the legit one, I think Nigerians should let their brains received this message. Using peer2peer it's has advantages and where exchanges are better than it.

[laredo7mm]

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

If people want to exchange their goods with crypto then govt must accept it as a legitimate currency. Actually, govt has the power to ban any certain thing if they think they can not control it. They think it's too risky and they can not control the outflow of money if they allow cryptocurrency for the transaction. It will enable borderless transactions which will not be beneficial for the govt.

[Poker Player]

They do not want to learn that the legitimacy of a decentralized currency is given by its users. As he represents a shitty centralized system with a shitty currency that is worth less and less due to the abuses of him and all those in power, he thinks that by saying that he will be able to save himself.
The legitimacy of Bitcoin is becoming more and more firm and it is gaining ground to his currency as well as to the rest of the fiat currencies, and he can do little to stop this.

[pinggoki]

Of course the bank will say that cryptocurrency is not a legitimate money because they hate cryptocurrency and there's no doubt that they will say such information. We all know that the cryptocurrency is a legit one in which we are earning fiat money or true money in a form of digital currency that we are enable to convert into a real currency. So no doubt that this is a legit one, am I right? As long as we are making money through cryptocurrency I can say that this is a legit, earning fiat money from a digital currency is still a legitimate money.

[uray]

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.

A government can de-legitimize things according to their wish and we do not need the banks to accept cryptocurrency to be a legit currency as long as there are users accepting and trading them globally you do not need a permission from a government.

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.

A government will worry about their fiat currency if people start investing in decentralized currency in large numbers as it will affect their economy badly, so any government will try to avoid that to happen.

[amishmanish]

A country who has not made enough progress in their own country and that’s why their currency is devalued over these years. Nigerian currency is so lower in value that even it is three digit in third world country like India. Lolz. Now the case of bitcoin:- The BTC itself is 5 digit currency and thus its almost impossible for them to buy single bitcoin or even 10 mBtc for that matter.

It doesn't really matter how many digits the currency has. A country can be prosperous without huge exchange rates as it depends on the trade balance. Just look at Japanese Yen.

OP says that only the central bank governor is against it while the Nigerian SEC is in favor. So that is a positive, right. Central bank are supposed to be autonomous bodies and the governor can have an opinion. Doesn't mean it can be termed policy. The fact that you are having senate hearings on this is a positive in itself.

As people, you all need to organize and explain in media and to people how what the governor says is his opinion and not the truth. An illegitimate opinion cannot decide the future of something that the people themselves want. Organize and ask for the right to stay connected to the international community in a positive way. You guys are good. I have seen it first hand. Nobody really wants to go back to the "Nigerian Prince" days. 

[yhiaali3]

This is their permanent argument, they always repeat this talk, cryptocurrencies are the first competitor to central banks and governments, so they work whenever they can to make cryptocurrencies illegal, but the reality is the opposite of that there is a collective adoption of cryptocurrencies and their increasing spread around the world much greater than before and this is evidence that People don't believe this and they keep buying and storing cryptocurrencies as legitimate money of value.

[Lorence.xD]

Of course the bank will say that cryptocurrency is not a legitimate money because they hate cryptocurrency and there's no doubt that they will say such information. We all know that the cryptocurrency is a legit one in which we are earning fiat money or true money in a form of digital currency that we are enable to convert into a real currency. So no doubt that this is a legit one, am I right? As long as we are making money through cryptocurrency I can say that this is a legit, earning fiat money from a digital currency is still a legitimate money.

Well, it is technically not legitimate in any way, cryptocurrency currently lies in the grey area of the financial laws so you can't be sure whether it is legitimate or not. I get that bankers hate cryptocurrency but I think that currently they have a reason to say that it is not legitimate. We can't really be certain that they are wrong or right with what they say unless we understood the subject through every nook and cranny. This is just an argument by a banker, there will still be hearings about this problem and I think that Nigerian government can't just discard the fact that they are leader in the African continent when it comes to cryptocurrency adoption.

[Wenbing]

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. 

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!
[/quote]

Yes, the government is afraid of decentrilization as the new financial revolution. Has he answered some of the errors in the fiat systems. Errors such as; devaluation, inflation and printing of money.

Is printing of money a real money?

[Karartma1]

Is printing of money a real money?

you are asking the same question as the one in this youtube scene.
https://www.youtube.com/watch?v=vkvdAznoFqY
Some of us do know that printed money is made out of paper and ink yet we fail to take our stance against it and we keep using fiat money because... reasons.
That is the matrix we have around us based upon.

[Gozie51]

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.

This is the initial government struggle for supremacy. Government of Nigeria will later come back to thereself and follow the growing nations. There are different opinion already from CBN and SEC , these are all government agencies. They are having different views within their house and the masses keep using P2P while the government is missing funds that would come to the banks as charge. China tried to stop it but couldn't, so Nigeria won't be able to stop a global business.

[AicecreaME]

To that governor who says bitcoin is not a legitimate money, I'm going to say that even gold is not a legitimate money, I hope it makes sense. I mean why people always compare Bitcoin to a literal fiat, like a physical one? it's a digital currency for your information, to all the people whose brains are too small to understand complicated stuff like Bitcoin.

To make it simple, Bitcoin has technology on it whole fiat have don't any, that's why it has a physical state unlike Bitcoin. But you could make money on it by exchanging it, just like in gold, and other precious stones that has value on it.

[goldade]

Well, it is not surprising that this is happening. Bitcoin was created with the aim of taking control of money away from the government and banks and giving it to the masses
If this purpose is being achieved, then definitely the bank would find every means possible to stop that from happening because they always want to have a hold over the people.
Personally, I'd say the Central Bank of Nigeria ought to open their eyes to see the numerous benefits of bitcoin and embrace it. That way, banks will make even more money from charges from transactions made by bitcoin users in the country
 

[magneto]

And ironically, Nigeria is the country with the biggest crypto growth over the past year or so.

The central bank can do all it wants in terms of trying to restrict access to BTC. But when every trend is pointing towards mass scale grassroots adoption, there is really no way of doing so effectively and in an enforceable manner.

As you said, people will simply move to OTC and P2P as opposed to trade on regulated exchanges. By restricting access, the central entities are simply shooting themselves in their own feet as they are forgoing millions in potential taxation revenue.

[Twentyonepaylots]

So is "Legitimate money" way back thousands of years ago. But look at what we are now, using pieces of paper that we decided and blindingly follow the rules of. It's not much different from bitcoin and cryptocurrencies in general, only that at the very least, bitcoin is very beneficial to the environment, and it gives the power back to the people who circulate it.

And ironically, Nigeria is the country with the biggest crypto growth over the past year or so.

The central bank can do all it wants in terms of trying to restrict access to BTC. But when every trend is pointing towards mass scale grassroots adoption, there is really no way of doing so effectively and in an enforceable manner.

As you said, people will simply move to OTC and P2P as opposed to trade on regulated exchanges. By restricting access, the central entities are simply shooting themselves in their own feet as they are forgoing millions in potential taxation revenue.

Only shows that governments are backed and influenced by elite entities and since cryptocurrency is giving them problems, they literally have no choice but to rely on the government

[dothebeats]

If that's their opinion of cryptocurrency then so be it. It is their domestic economy which will miss some of the benefits of accepting crypto so let them have it. The whole world is turning positive with cryptocurrencies while Nigeria is still afraid of it being used in criminal activities and illicit affairs. No matter how hard the government and the central bank suppress crypto in the country, if the people wants to use it, they will find a way.

They are missing a lot in terms of taxes and investment opportunities in here tbh.

[AndySt]

If that's their opinion of cryptocurrency then so be it. It is their domestic economy which will miss some of the benefits of accepting crypto so let them have it. The whole world is turning positive with cryptocurrencies while Nigeria is still afraid of it being used in criminal activities and illicit affairs. No matter how hard the government and the central bank suppress crypto in the country, if the people wants to use it, they will find a way.
They are missing a lot in terms of taxes and investment opportunities in here tbh.

The only legitimate currency on the territory of any state is its own national currency and foreign currencies that can be exchanged for its own currency. Therefore, I simultaneously agree with their point of view and at the same time disagree, because cryptocurrencies are also gaining their place in the sun, and any sane state should allow citizens to make transactions.