According to reports, Adamo Lamtek, a senior director of the Central Bank of Nigeria, denied that his institution imposed restrictions on the use of cryptocurrencies. In contrast, Lamtek, the deputy governor of the Central Bank of Nigeria (CBN) in charge of corporate services, stated that his organizational directive only applies to the banking industry.

Prohibition only applies to banks

Lamtek’s remarks, speaking on behalf of CBN Governor Godwin Emefiele, followed the Central Bank’s instructions on February 5, 2021, which prohibit banks from promoting crypto-related transactions. After the announcement, financial institutions immediately began to comply with the directive. Since then, trading volume on centralized crypto exchanges has fallen sharply, and reports indicate that trading volume on peer-to-peer platforms is rising.

At the same time, before the release of CBN’s latest news, there were rumors that the authorities would immediately curb peer-to-peer transactions like Binance’s P2P platform. However, Lamtek, who spoke at a seminar for financial correspondents and corporate editors in the country, clarified that the CBN directive does not actually prohibit cryptocurrency transactions.

At the same time, after CBN ordered banks to stop facilitating encrypted transactions, many leaders from the Nigerian blockchain and fintech sectors expressed opposition. One of the leaders, Adedayo Adebajo, managing director of Jelurida Africa DLT, told News that after extensive discussions, many people are in favor of regulating the industry rather than banning it outright.

CBN has no right to stop P2P transactions

As previously reported by News, this CBN ban has been opposed by non-crypto parties including Nigerian Senate members and the country’s Vice President Yemi Osinbajo. According to Adebajo, now, the latest CBN position on cryptocurrencies is likely to be a response to voices opposed to a comprehensive ban. Adebajo said:

Don’t forget that although the CBN order continues to trade on the peer-to-peer platform, the initial attempt was only on the surface. Since the financial sector has partially delegated powers, allowing trade to continue will no longer be subject to the power of CBN.

Although CBN cannot stop peer-to-peer transactions, Adebajo believes that the latest description is “a way forward. We all hope that through continuous efforts to regulate the industry, the speed of adoption will be widespread and rapid.”

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What do you think of CBN’s clarification on not prohibiting encrypted transactions? Tell us what you think in the comments section below.

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