The: The Reason Behind The Consumer s Need
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The Reason Behind The Consumer s Need Video
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The Central Bank of Nigeria CBN has explained in detail the reason for its directive to Deposit Money Banks DMBs and other financial institutions to desist from transacting in and with entities dealing in cryptocurrencies. In a press release dated 7th of Februarythe CBN said it felt the need to provide further justifications about its position to the general public. The read article bank further stated that the prohibition of cryptos was not exclusive to Nigeria, as certain levels of restrictions on financial institutions facilitating crypto transactions have been applied in several other countries around the world.
A perfunctory reflection on the definition of cryptocurrencies can already reveal several problems.
The CBN also spoke on the fact that some of these cryptos are issued by unregulated and unlicensed entities which begs the question of legality. It also claimed that cryptocurrencies have been used to finance several illegal activities including terrorism and money laundering.
It is on the basis of this opacity that cryptocurrencies have become well-suited for conducting many illegal activities including money laundering, terrorism financing, purchase of small arms and light weapons, and tax evasion. The CBN said it would continue to educate Nigerians on the disadvantages of cryptos in the financial system.
Small retail and unsophisticated investors also face a high probability of loss due to the high volatility of the investments in recent times. Save my name, email, and website in this browser for the next time I comment. Ayomide Ayano February 8, Previous Article.
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