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All Forms Of Exchange Medium Is Subject To Criminality And Fraud – Kingsley Moghalu Wades In On CBN Ban Of Cryptocurrency
All Forms Of Exchange Medium Is Subject To Criminality And Fraud – Kingsley Moghalu Wades In On CBN Ban Of Cryptocurrency

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Ex Presidential aspirant and former deputy governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu has criticized the Central bank’s reason for banning cryptocurrency transactions in the country.

Recall that last week, CBN made the news after releasing a statement on Sunday February 7, stating that it banned cryptocurrency transactions because they are largely speculative, anonymous, untraceable and are increasingly being used for money laundering, terrorism financing and other criminal activities.

Moghalu who reacted to this while appearing as a guest on an Arise TV program on Monday February 8, stated that the excuse of “cryptocurrencies being used to perpetrate fraud” is not a serious argument.

Moghalu in the interview stated that every medium of exchange is subject to criminality and fraud. He said all the apex bank needed to do, was come up with a regulatory framework that restricts the use of cryptocurrency or subjects it to some surveillance.

He said;

“Cryptocurrencies have their risks and the central bank should be concerned. The argument that cryptocurrencies are used to perpetrate fraud is not a serious argument.

“People can use cryptocurrencies for wrong uses but every medium of exchange is subject to fraud and criminality.

“If you can manage the risk of fraud in paper money and other electronic platforms, why can’t you think of managing it with cryptocurrencies.

“I would have preferred some deep thinking about how to come up with a regulatory framework that restricts the use of cryptocurrency or subjects it to some surveillance that alerts the central bank if there are serious abuses that can affect financial system stability.

“CBN, especially in my time, did have a tendency for innovation ourselves, so I don’t see why there should be some sort of declaration of a third world war between the central bank and cryptocurrency.

“An outright ban on financial institutions from having accounts associated with cryptocurrency exchanges or cryptocurrency trading, seems to me, it wasn’t the best approach to the problem”.

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