Worried by the recent ban on cryptocurrency in Nigeria, the Senate has summoned the Governor of the Central Bank of Nigeria, Godwin Emefiele, and Director General of the Security and Exchange Commission, Lamido Yuguda.
The Senate summoned Emefiele and Yguda during its plenary on Thursday following a motion by Senator Istifanus Gyang and Tokunbo Abiru, titled, “CBN decision to stop financial institutions from transacting in cryptocurrencies and matters arising therefrom.”
The lawmakers asked its committees on Banking, Insurance, and other financial institutions, Capital Market, and that of ICT and cybercrime to summon Emefiele and Yuguda to come and brief the panel on the prospects and threats of the cryptocurrency on Nigeria’s economy.
Gyang, in his leading debate on the matter, had told the Senate that the CBN issued an order to stop all financial institutions from transacting in cryptocurrencies.
According to him, the CBN decision was a follow up to its earlier directives in January 2017 and February 2018, which forbade banks not to use, hold, trade and/or transact in cryptocurrencies.
He noted that the directive was to safeguard the Nigerian economy from the adverse effects of the Cryptocurrency regime which are unregulated digital or virtual currencies that are issued by anonymous entities and secured by cryptography.
Gyang, who described cryptography as a method of encrypting and hiding codes that prevent oversight, accountability and regulation, upon which the CBN said its use in Nigeria violated and contravened existing law as only the CBN was authorised by law to issue legal tender; expressed concern that cryptocurrency by nature was anchored on anonymity, obscurity and concealment of its patrons and actors.
“Cryptocurrency is both an opportunity and a threat, hence the Senate has a responsibility to ensure that the nation and citizens do not miss out on the opportunities that Cryptocurrency offers.
“In the same vein, the Senate intervention could mitigate and prevent likely consequential effects on the nation’s economy and security,” he said.
Consequently, Senate President, Ahmad Lawan, asked the joint committees to listen to Emefiele and Yuguda, and submit their report for the consideration of the Senate in plenary within two weeks.