Two weeks ago, the Central Bank of Nigeria (CBN) announced that it would close all accounts across Nigeria that had crypto connections. Now, the International Monetary Fund (IMF) has shared its opinion regarding the situation.
The IMF believes that Nigeria is simply showing caution because of the risks that come with cryptocurrencies. The statement was revealed in the 2020 Article IV IMF Staff Report for Nigeria.
Ari Aisen, the Resident Representative of IMF for Nigeria, has commented that the use of crypto raises concerns since Bitcoin and other digital assets can be used in illicit activities (money laundering, drug peddling, etc.).
“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 basically voiced the same concerns as the CNB, but these warnings fell on deaf ears as Nigerians continue to support various cryptocurrencies.
This is reflected in Bitcoin’s price, which was valued at $1 in 2009 when it was created, but now is being traded at more than $50,000 internationally – in fact, the ban has made its price jump up to $80,000 in Nigeria.