The Association of Bureaux De Change Operators of Nigeria has charged the Central Bank of Nigeria to introduce measures to insulate diaspora remittances against the impacts of cryptocurrencies.
ABCON made the call in its quarter one economic review, arguing that such measures were necessary to protect diaspora remittance inflows against the disruption.
Although the association commended the CBN for the N5/1$ rebate to encourage diaspora Nigerians to use official channels for foreign transfers, it noted that the CBN needed to address other issues that drive the patronage of cryptocurrency exchanges.
It said: “Public acceptability for cryptocurrency exchanges is rising, which could be responsible for the huge drop in diaspora inflows to Nigeria.
Insecurity is giving it greater prominence as investors and citizens find cryptocurrency a haven for their wealth in case of any eventuality.
“In most emerging markets, Bitcoin transfers surged last year, as the COVID-19 pandemic uncovered cheaper and more efficient digital remittance services.
“Migrants sending money across borders to their families prefer the minimal transaction costs of cryptocurrency exchanges against the exorbitant cost of traditional money transfer companies like Western Union.”