Every medium of exchange is subject to fraud and criminality – Moghalu reacts to CBN’s reason for banning cryptocurrency transactions

Former deputy governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu has criticized theapex bank’s reason for stopping cryptocurrency transactions in the country. 

Recall that CBN had in a statement released on Sunday February 7, said 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. 

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

The former presidential candidate in the interview averred that every medium of exchange is subject to fraud and criminality. Moghalu 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”.