all means of exchange are prone to fraud and crime – Moghalu

Former Deputy Governor of the Central Bank of Nigeria (CBN) Kingsley Mogalu criticized the reason the top bank stopped cryptocurrency transactions in the country, IgbereTV reported.

CBN said in a statement released on Sunday February 7 that it has banned cryptocurrency transactions as they are mostly speculative, anonymous, untraceable, and increasingly used for money laundering, terrorist financing and other criminal activities.

Reacting to this during the Arise TV show on Monday Feb 8, Mogalu said that justifying the use of cryptocurrency for fraud is not a major issue.

The former presidential candidate said in an interview that any medium of exchange is prone to fraud and crime. Mogalu said that all the leading bank needs to do is develop a regulatory framework that will restrict the use of cryptocurrency or subject it to some oversight.

He said;

“Cryptocurrencies have their risks and the central bank should be concerned. The argument that cryptocurrencies are used to commit fraud is frivolous.

“People can use cryptocurrency for the wrong purposes, but any medium of exchange is prone to fraud and crime.

“If you can manage the risk of fraud with paper money and other electronic platforms, why not consider managing it with cryptocurrencies?

“I would prefer to think deeply about how to develop a regulatory framework that restricts the use of cryptocurrency or puts it under some control that warns the central bank of serious abuses that could affect the stability of the financial system.

“CBNs, especially in my time, were themselves inclined towards innovation, so I don’t understand why there should be some kind of declaration of a third world war between the central bank and cryptocurrency.

“A complete ban on financial institutions from having accounts associated with cryptocurrency exchange or cryptocurrency trading seems to me not the best approach to solving the problem.”

Source: – Igbere TV