Nigeria's Senate Summons Reserve bank Chief to Discuss Crypto Ban.
The Nigerian Senate wants Central Bank Governor Godwin Emefiele and chief securities regulator Lamido Yuguda to testify about cryptocurrencies.
Nigeria's Senate has summoned the country's leading monetary regulators for a rundown after the reserve bank bought local financial institutions to stop offering services to crypto companies and users last Friday.
The Nigerian Tribune reported Thursday the Senate has mandated its banking committee to invite the guv of the reserve bank (CBN), Godwin Emefiele, and the director general of the Nigerian Securities and Exchange Commission, Lamido Yuguda, to appear at a time to be determined and explain the chances and dangers of cryptocurrency. The Senate session going over the issue was live-tweeted on the Senate's main Twitter page.
https://twitter.com/NGRSenate/status/1359832816993845249?s=20
Last week's CBN regulation triggered an outcry on social media, while local crypto supporters wrote to the bank requesting for explanation on the order. In action, the CBN released a five-page declaration that included a pledge to protect Nigerian residents from the threats of cryptocurrencies.
" [The CBN] will continue to do all within its regulative powers to educate Nigerians to desist from its usage and safeguard our monetary system from activities of speculators and scammers," the declaration said.
However a variety of senators opposed the CBN relocation and a straight-out ban on crypto, though they spoke in favor of controling the market.
" The next level is cryptocurrency and we can't escape from it. It is CBN's responsibility to bring Nigerians to the next level, not preventing it. It is the simplest way of exchange," Sen. Bassey Akpan said.
Despite its dangers and threats, crypto has its benefits, Sen. Dung Gyang stated, including that the lawmakers want the CBN governor to inform them on the risks and chances that crypto uses the country so that Nigeria will not "lose out."
Another senator, Solomon Adeola, stated he is "strongly against" the CBN's outright ban on crypto and that the bank must rather be managing the space.
According to the Nigerian Tribune report, the Senate will be taking an informed position on the issue after the briefing.
Sen. Adetokumbo Abiru, who co-sponsored the movement, said cryptocurrency is a major transaction tool and a company of "brimming youths" in the nation.
"So I am unsure the CBN can ban it," Sen. Abiru said.
Nigerian crypto users appeared largely undeterred after the CBN directive took effect, turning to peer-to-peer exchange platforms to continue trading. Nigerian peer-to-peer trading skyrocketed past two of Africa's largest crypto markets, Kenya and South Africa, since the statement.
https://www.coindesk.com/nigerias-senate-summons-central-bank-chief-to-explain-crypto-ban
