Key Takeaways
- Nigerian Financial Crimes Regulator chairman Abdulrasheed Bawa believes that digital assets pose a threat to financial systems
- Bawa cites the use of cryptocurrencies by criminals to receive ransom
- Cryptocurrencies are banned in Nigeria, and the CBN is set to introduce its CBDC
The financial regulator chief made this comments when speaking at a conference organized in Abuja recently.
The meeting was convened to discuss the increasing costs of economic crimes globally.
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Bawa noted that financial crimes was a major problem for global economies and caused damage to existing financial systems.
He further pointed out that the issues of economic crimes were not only for developing countries and hinted that developed nations also face similar problems.
Bawa added that the increase in cyber-crimes in the past decade was an indication of the endemic problem.
n addition, he cited that cybercriminals now prefer to transact in cryptocurrencies.
The EFCC boss believes that regulators globally have to work together to ensure a safer financial clime within the global financial system.
However, these comments indicate that the Nigerian government still views cryptocurrency as a means for illegal transactions.
This is despite a report released earlier the year that indicated that cryptocurrencies constituted less than 10% of cybercrimes.
Fiat currency remains the overwhelming choice for criminals despite the anonymity features offered by crypto-assets.
Cryptocurrencies are currently banned within the financial sector in Nigeria.
The Central Bank of Nigeria took this decision in February 2021 and is in the final stages of releasing the e-Naira as an alternative to cryptocurrencies.
However, many financial stakeholders are not convinced that the e-Naira will be able to achieve significant success.
They point to the current state of the Naira, which has hit record lows against the US dollars in recent days.
Do you agree with the EFCC chief’s comments on cryptocurrencies?
