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

[galestorm]

A typical response from an individual who has close ties with a bank. Cryptocurrencies pose a threat to fiat money, since its goal is to establish a peer to peer network that is powered by its users. The lack of central authority is the reason why the government and central banks see this as a threat. Fiat money gives them a sense of control, enabling them to track currency movement, collect taxes on it, and trace criminal activity. All of these is lost with the rise of cryptocurrency. Emefiele says that it has no place in our monetary system because they dont want cryptocurrencies to be widely adopted by the population. Because we all know that when it does happen, banks will be irrelevant.

[SquallLeonhart]

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

I don't get it, what is legitimate money? I do not get why some people who are usually old, some cases just powerful, do not like bitcoin? I mean I get it they fear that their fiat will become less valuable and bitcoin will be too powerful and that will make these people less powerful so they fear it and want nothing to do with it and ban it. However they do not realize that bitcoin could help them as well as help their nation as well? Don't they see this?

Let's assume you are a dictator of a poor nation, you could just give everyone tablets or laptops, not even expensive ones, help them build farms of whatever, tell them to charge bitcoin, and you could literally have both a lot of employment and those people who make money both will use it to get your economy better, get paid from other nations so you gain foreign currency which strengths your currency and you could tax them a lot and get their bitcoin as well which would make you both rich, your nation rich, and you rich.

[ven7net]

It so happened that BTC and in general cryptocurrencies are now not that they are not legitimate money, they seem to be not money, but more of a kind of asset, which, as I know, is already beginning to regulate in many countries, which means at the official level on legal grounds BTC and cryptocurrencies are assigned a certain status. This means that you need to look at the laws in those countries where the regulation of BTC and other cryptocurrencies began, and there you will find out what BTC or other cryptocurrencies refer to. It is worth noting that there may be different concepts in different countries.

[Jemzx00]

It so happened that BTC and in general cryptocurrencies are now not that they are not legitimate money, they seem to be not money, but more of a kind of asset, which, as I know, is already beginning to regulate in many countries, which means at the official level on legal grounds BTC and cryptocurrencies are assigned a certain status. This means that you need to look at the laws in those countries where the regulation of BTC and other cryptocurrencies began, and there you will find out what BTC or other cryptocurrencies refer to. It is worth noting that there may be different concepts in different countries.

Well if you look at the price volatility of Bitcoin and other cryptocurrencies, you will easily thought of it as an investment such as Stocks. The price changes indefinitely and not on a constant pattern which is look to as a Digital Asset rather than a Currency that we will wanted to achieve.
As of now, Stablecoins are much more like a digital currency due to the minimal changes on its price and acts just like a fiat money. I would also say that USDT, BUSD and other stablecoins should be considered as Digital Currency and which should be focused on by the Government Institutions.

[Myleschetty]

It so happened that BTC and in general cryptocurrencies are now not that they are not legitimate money, they seem to be not money, but more of a kind of asset

Oh. Why is Bitcoin and other genuine cryptocurrencies are not legitimate money? Because the government said so, just to created FUD and to desist people from seeing Bitcoin the way it is.
What is money? According to Google Money is any object that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. Then why is Bitcoin not money when it is used for the activities money is used for?

[AndySt]

It so happened that BTC and in general cryptocurrencies are now not that they are not legitimate money, they seem to be not money, but more of a kind of asset

Oh. Why is Bitcoin and other genuine cryptocurrencies are not legitimate money? Because the government said so, just to created FUD and to desist people from seeing Bitcoin the way it is.
What is money? According to Google Money is any object that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. Then why is Bitcoin not money when it is used for the activities money is used for?

You answered your own question The legitimacy of a particular currency on its territory can be established only by the state and no one else. If tomorrow the Central Bank of Nigeria declares bitcoin a legitimate currency, then simply put, bitcoin will become a legitimate currency in Nigeria, although there are also issues with the regulatory framework. And if in Nigeria you can not use bitcoin for activities for which money is used, then bitcoin is not money there, and the point is.

[Sithara007]

Even after close to 100 replies, it seems like the users are confused about the statement from the Nigerian central bank governor. Obviously none of us expect Bitcoin to me recognized as a currency on par with the Nigerian Naira (NGN). The central bank has also clarified on this. On the other hand, we want cryptocurrency to be recognized as a legitimate investment asset. And as far as I know, the central bank seems to be OK with this.

[Matimtim]

Yes, legitimate means something which is acknowledge  by the owner or creator by law, the case of bitcoin or crypto currency is not legitimate because there's no law acknowledging crypto currency or bitcoin by its owner or there's no law legalizing bitcoin as currency that everyone can use in the form of payment.

However even crypto currency isn't legitimate currency but we can use it in the form of payment as one of decentralize money.

[wiss19]

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. 
[/quote]
Wait, thought I have already seen a news that the Nigerian vice president is not in support of the ban of Bitcoin and has already said that they (Central Bank of Nigeria) should lift the ban on bitcoin and instead create rules to regulate it?

If the vice president has really said that, then they have no other option than to lift the ban soon, I guess the reason they have not lifted the ban till now is because they are still working on ways that they are going to regulate it. And let’s be true to ourselves, them banning Bitcoin doesn’t make any sense since people are now switching to P2P, so how exactly have they banned it? Lol.

[TastyChillySauce00]

Yes, legitimate means something which is acknowledge  by the owner or creator by law, the case of bitcoin or crypto currency is not legitimate because there's no law acknowledging crypto currency or bitcoin by its owner or there's no law legalizing bitcoin as currency that everyone can use in the form of payment.

However even crypto currency isn't legitimate currency but we can use it in the form of payment as one of decentralize money.

Although bitcoin is deemed as illegitimate as Nigeria refuses to recognize bitcoin but atleast they could consider it as an asset and not banning people like that.
Many countries also didn't recognize crypto but atleast they gave their citizen the leisure of using crypto as an asset and not money, I think Nigeria central bank in this case, choose the wrong step not to mention this kind of technology sooner or later gonna dominate.

[Charles-Tim]

Wait, thought I have already seen a news that the Nigerian vice president is not in support of the ban of Bitcoin and has already said that they (Central Bank of Nigeria) should lift the ban on bitcoin and instead create rules to regulate it?

If the vice president has really said that, then they have no other option than to lift the ban soon, I guess the reason they have not lifted the ban till now is because they are still working on ways that they are going to regulate it. And let’s be true to ourselves, them banning Bitcoin doesn’t make any sense since people are now switching to P2P, so how exactly have they banned it? Lol.

Yes, the vice president of Nigeria is in support of cryptocurrencies, but he has no power to make CBN to lift off the ban, he only encouraged them not to fear, that the world is change, and that Nigeria should blend with the changes, rather than banning what could be beneficial tomorrow for the country. So, the president only advice the CBN in his speech in a summit.

Nigerian crypto traders have resorted to p2p which is better and far more encouraging privacy than direct bank transactions from/to crypo institutions like exchanges.

[geegaw]

Yes, legitimate means something which is acknowledge  by the owner or creator by law, the case of bitcoin or crypto currency is not legitimate because there's no law acknowledging crypto currency or bitcoin by its owner or there's no law legalizing bitcoin as currency that everyone can use in the form of payment.

However even crypto currency isn't legitimate currency but we can use it in the form of payment as one of decentralize money.

Although bitcoin is deemed as illegitimate as Nigeria refuses to recognize bitcoin but atleast they could consider it as an asset and not banning people like that.
Many countries also didn't recognize crypto but atleast they gave their citizen the leisure of using crypto as an asset and not money, I think Nigeria central bank in this case, choose the wrong step not to mention this kind of technology sooner or later gonna dominate.

Perhaps the central bank of Nigeria has their own plans and this idea is just a little warning, it doesn't pose too much of a threat to the crypto community, our community is big enough and so influential, the law is no longer something that can be bound by all users, the only result for warnings is that users are still comfortable using crypto. In the future, similar ideas will probably be scrapped as crypto purchases are slowly bank-linked on exchanges, the bank probably does not reject such a great and profitable service

[tygeade]

I guess that right now they are starting to regret the actions that they have taken because I have already seen the news that they changed what they said and are now claiming that they never banned crypto currency trading for individuals, rather the instructions was for banks lol.

But, I have already seen those that they blocked their accounts for trading cryptocurrency, so why now do they try to go back on what they said and try to pretend like it wasn’t true? Now that they banned it they are going to know the true value of it. And moreover it’s a problem for them if the exchanges established there begins to move, lots of people will lose their money. It’s not going to be easy for real.