IMF backs CBN’s restriction on use of cryptocurrencies

IMF backs CBN’s restriction on use of cryptocurrencies

In what appeared as a way of baking Nigerian apex bank’s ban of cryptocurrency transactions in the country, an official of the International Monetary Fund (IMF) has called for caution in the use of the digital currencies, describing it as a concern.

It disclosed this during a virtual briefing on the recently published 2020 Article IV IMF Staff Report for Nigeria.

Ari Aisen, the Resident Representative of IMF for Nigeria, said the concern on the use of cryptocurrencies was why many central banks were cautious about the development.

He said, “The issue with some of the cryptocurrencies is that perhaps some care should be taken about their activities. The use of cryptocurrencies is a concern.

“That is why some central banks, not only in Nigeria, have these concerns about what kind of activities these cryptocurrencies are put and how best to monitor those activities.”

Aisen noted that some of the activities might be illegal or related to money laundering and drug peddling.

This, he said, was why many monetary authorities had been concerned about how best to supervise and increase their oversight regarding the use of cryptocurrencies.

Aisen further canvassed the unification of foreign exchange rates in Nigeria so as to make the management of forex more transparent across the country.