According to a local news report, the Central Bank of Nigeria (CBN) provided clarity on its decision to prevent Nigerians from being able to carry out crypto transactions using their commercial bank account.
Apparently, they believe that these digital assets carry inflationary risks and as such, they pose a threat to the financial stability of the country.
This reason was put forward by Kinsley Obiora, the Deputy Governor of Economic Policy at the Nigerian central bank, at a retreat held in the capital city of the country, Abuja. Speaking at the Business Session of the Fiscal Liquidity Assessment Committee (FLAC), Obiora cited concerns about the anonymity of digital currencies, leading to the ban.
“As the popularity of cryptocurrencies increased, they felt that central banks should not have unchecked authority over the money supply, fearing it could lead to inflation and reduce households’ purchasing power,” he said.
The CBN had earlier put a ban on cryptocurrencies in the country where citizens have been unable to carry out crypto transactions using their bank accounts.
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