May 30, 2023

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Rescind the ban on crypto, balance the risks against current economic depression- Kingsley Moghalu

2 min read

The Federal Government has been called upon to be at its wits end in banking and on the new digital instruments in international investment, by rescinding the ban on cryptocurrency trading but balance the risks against the country’s current realities.

Dr Kingsley Moghalu, a former Deputy Governor with the Central Bank of Nigeria, CBN, lamented that the present administration seems jinxed on every critical issue with the potential to move the nation forward, but the federal government often would be comfortable opting for decisions that are retrogressive, and of the least good to the least number of the citizens.

Moghalu who frowned at the retrogressive decision by the federal government through the CBN Governor said the government position was as though the Buhari-led administration is always making decisions to take away opportunities from Nigerians, especially in a depressed economy such as being witnessed in the country presently.

Dr Moghalu made these frank and no holds bare reactions on Channels TV, while fielding questions on the rationale for government’s decision against cryptocurrencies at the time when the nation’s economy is glaringly receding and government through her decision, is further perpetuating greater harm to the economy and by extension, to the generality of the citizenry

Centra Bank of Nigeria, CBN, Abuja

The former Presidential candidate in the 2019 general election stated that if he were to be in a position to decide, despite the risks involved in trading in cryptocurrencies, he would not have recommended that cryptocurrencies be banned out-rightly because it is fast becoming a real factor in Nigeria’s investment ecosystem and livelihood of many Nigerians”.

He said that “a lot of the activities across the world are going digital, and I would not recommend banning it (cryptocurrencies) out-rightly”.

In further explanation as to what would have been the rationale for his stance he enthused, “$500 million worth of Bitcoin has been traded in Nigeria within the last five years, and Nigeria is one of the top 10 countries in the use of cryptocurrencies in the world today.”

He further explained that “regular currencies depreciate against cryptocurrencies such as the BTC but many policies from the bank in the past few years have not been investment centric”

Security And Exchange Commission, SEC, Abuja

Moghalu called on the federal government especially those concerned with monetary policy and international investments to, make the investment climate more favourable and friendly to all categories of investors.

He said it is in a depressed economy as it’s being experienced now that those in charge should be at their wit’s end and roll out proactive policy whose impact would be felt through banks friendly disposition, and through the volume of foreign investment flowing into the country.

The acclaimed economist reiterated that “investment climate in Nigeria is unfriendly, that’s why the foreign investment is declining,” he added

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