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.”
The Governor stated that they are still working on their data and will make it available to the public soon. He also, made comments about the rollercoaster movement of Bitcoin propelled by Elon Musk’s tweets, saying that the major supporter of Bitcoin, Elon Musk, has shown strong scepticism in recent times, hence, the public should be wary.
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.