The CBN governor says most cryptocurrency transactions are illegitimate
- 26th May 2021
- Posted by: Hakeem
- Category: Crypto
During the monetary council meeting held today, the CBN governor stated that most cryptocurrency transactions are illegitimate, and he was not astonished about the fall of Bitcoin. A question was asked to Governor Godwin Emefele if he had a sense of consolation about the plunge in Bitcoin, and he responded by saying that the CBN has conducted research to show that most cryptocurrency transactions are illegitimate.
Emefiele further stated that under the Bitcoin cryptocurrency transactions, Nigeria comes 2nd but in the global size of the economy, Nigeria comes 27th.
Speaking about the growth of cryptocurrency transactions compared to the size of the economy, he said, “Do you think that they would allow you to grow your cryptocurrency business to the second position if what is inside is the big deal that is going to profit everyone? It is not that simple.”
What this means
- Governor Godwin Emefele’s perception and policy on cryptocurrency may not change given his response to the questions asked.
- He also raised concerns about the ease of generating wealth through cryptocurrency which may not translate to the growth of the real sector of the economy.
- Lastly, given the encryption found in cryptocurrency transactions, the Central Bank has seen reason to suspect most transactions as fraudulent.