What is CBN’S view on cryptocurrency?

People have been asking what is the CBN’S view on cryptocurrency,The central bank of Nigeria (CBN) has clarified a statement it issued last month that seemed to order financial institutions to close all accounts associated with cryptocurrency trading.

According to a report on Sunday, bank officials have said the directive is not to be mistaken for an outright ban. Instead, the bank said it has reiteratd an already imposed ban on institutions facilitating cryptocurrency transactions.

Speaking on behalf of the bank’s chief, Godwin Emefiele, Deputy Governor Adamu Lamtek said the bank had never banned cryptocurrency activity in the country.

The CBN did not put restrictions on the use of cryptocurrencies and we are not discouraging people from trading in them, said Lamtek. “What we have just done was to prohibit transactions on cryptocurrencies in the banking sector.”

Lamtek spoke at the 30th seminar for Finance Correspondents and Business Editors held in the country’s capital, Abuja.

Disorder arose last month when the CBN said it was reminding regulated banking management that “dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited.” Institutions were told to “identify persons and/or entities” transacting with cryptocurrency or operating crypto exchanges.

That prompted many Bitcoin users in the inflation-hit nation to take to social media in anger, seeking clarification on the bank’s order. In response, the CBN provided a five-page statement that included a pledge to protect Nigerian citizens from the risks of cryptocurrencies.

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