Senate expresses concern over spread of Crypto-currency

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Cryptocurrency, Nigerian Senate, CBN

 

The Nigerian Senate has expressed concerns over the widespread of usage of Crypto-currency in the form of Bitcoin in Nigeria, warning that Nigerians seem not to be aware of the consequences with the way it is openly marketed across the country on the local television and radio stations.

In a motion, sponsored by Senator Benjamin Uwaiumogu (APC, Imo North), the upper legislative chamber expressed concern that Nigerians are freely advised, and even persuaded to invest in crypto-currency as it promises quick returns, in certain instances, a triple or quadruple of the invested sum as profit within days.

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Uwaiumogu noted that as it stand today, Bitcoin is not recognised by the Central Bank of Nigeria, it does not exist in any tangible form and is also not subject to any international or local monetary regulations, or backed up by any established government institutions for that matter.

He also urged the Central Bank of Nigeria, Nigeria Stock Exchange, Nigeria Deposit Insurance Commission and the National Orientation Agency to be aggressive in educating Nigerians on the investment risks inherent in Bitcoin.

Crypto-currency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

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