By Adefolarin A. Olamilekan
Humanity will continue to live in appreciation of Information Communication Technology (ICI) as Fourth Revolution. That demarcate us from from, Slavery, Agricultural and Industrial Revolutions respectively. Reason been that, it is one of the great wonders that happened to Mankind. Bringing so much demostrated changes with value additions to life.
Fundamentally, ICT has gone beyond just information and telecommunication to varieties of innovation in various aspects has demand by human needs.
Chiefly, significant breakthrough in telemedicine, creative engineering, drone aviation and virtual education are attributed to ICT. Not to forget, It role in aiding economy growth, social interraction, networking and relations.
Take for instance, the system for exchange of goods and services has been transformed remakably, courtesy of ICT.
The same is with the financial, capital and commodity market environment.
However, in the realm of economic dealings which ICT birthed what we now call digital currency economy. It immensely, usher us into a novel opportunity in digital currency and financial platform off which Cryptocurrency and it allied digital currency came onboard.
Not to mentioned the varieties of digital coins and fintech services to deals on and make profits.
Unfortunately, the introduction and acceptance of this form of exchange has challenge the traditional mode of physical cash currency transaction and monetary dealings today.
Coincidentally, leading global financial monetary authorites such as International Monetary Fund (IMF),World Bank, and Central Banks across the world. Acknowledge ICT innovations in the financial sector, advancing it services and cashless model.
Conversely, they are not comfortable with some of the changes to eliminate the power of monetary authorities.
Arguably, this come against the decentralization nature of cryptocurrency system. It is founded on the platform of blockchain technology innovation. What monetarist economic consider to be in contrast to it role. And essence of genuine trading system that required human interface, integrity and authority control.
Interestingly, cryptocurrency in recent times as recorded deals runing into billions of dollars transactions.
Thereby, empowering individuals and groups with funds and transfer of such billions of dollars across national borders without knowldge of or control of monetary bodies.
Hence, the fear of crypto destabilizing establised status quo,causing financial crisis and wreaking havoc through crypto speculation for hot money profits.
This however reawaken monetary authorities in different country to rise against crypto taken over physical finacial capital space and enroding principles.
Critically, the soverighn authority in charge of monetary policy in Nigeria, have been up against cryptocurrency transaction in the country. The recent media report of CBN hammer of fines on three Deposit Money Bank(DMB’s) attracts a lots of reactionary views.
Moreso, that the apex bank action raised questions on the continous ban of cryptocurrency in the country.
Particularly, as the fine of N800 million against errant DMB’s facilitating cryptocurrency transactions calls to question the effectiveness of the ban.
Instructively, we cannot forget how cryptocurrency community and stakeholders in unisome challeng the apex bank banned policy.
Many of them questioned the rational behind it with furious accussation against the authority. Denying young Nigerians of an important source of employment and income to sustained themselves in the face of harsh economic reality.
Nevertheless, the apex bank assert it reasons, basing it primarily on the illegality of crypto to serve as illicit financial medium to funds terrorism,drugs cartel and as well as forex speculations.While many Nigerians also believe the apex bank action deserved commendation,if the truama from MMM shock is considered.
In retrospect the CBN’s in an efforts to tighten down on cryptocurrency, ensuring that DMB’s restrictions on cryptocurrency trading are in place.
As at 5th Febuary 2021 in a circular informed Deposit Money Banks, Non-Financial Institutions, and other financial institutions against engaging in Crypto and other digital transactions.
Majorly, the CBN was specific in this fiat directive to local financial institutions against having any transactions in crypto or facilitating payments for cryptocurrency exchanges.
In addition, the apex bank instructed the financial institutions to immediately “close the accounts of such persons or entities transacting in or operating cryptocurrency exchanges”.
As a means to deterred DMB’s and other finanacial institutions from been sleazy. In furtherance, the apex bank place on notice that any breaches to the directive “will attract severe regulatory sanctions andcompliance is was immediate effect.”
However, the media report that three DMB’s failure to comply with the regulations of prohibiting some of their crypto enthuist customers from transacting in cryptocurrencies attract CBN hammers.
According to the report, Access Bank Plc, was fined N500 million,
United Bank for Africa Plc N100 million naira,and Stanbic IBTC Bank, the local unit of Standard Bank Group Ltd., N200 million for two accounts allegedly used for crypto transactions.
In a switch reactions to this development,one of the DMB’s Chief Executive Officer claimed that, “the transactions for which it was sanctioned may have passed through its system undetected”.
He however admit that the CBN was able to detect the relevant transactions “using advanced capacity” that Nigerian lenders do not have access to, and they have urged the central bank to share the technology”.
In this regard, it has been acknowledge that the CBN has the ability to detect cryptocurrency transactions that DMB’s systems may lack capacity to detect.
Succintly, it could also be the failure, neglegence as well as intended actions on the part of DMB”s to make profit from such illegal activities.We can’t rule out such adventures by cowboys and hyenas in the financial sector of Nigeria.
On the other hand in all sense of urgency, having acknowledge the efficacy of ICT as the backbone to all innovation in the financial sector.We must also not lose focus on the inherent problems associated with it, espcially with the intro of cryptocurrency.
Although, the CBN in particular have been up scaling it game in monetary policies,even going as far as creating e-naira digital platform.
Nonetheless,it omission stand erect as not engaging stakeholders in policy formulation before eventual implementations.
Going forward,what need to be done.First, a legislative drafting with input from all stakeholders should be consider by the CBN to stop all forms of illegal financial scam platform.
Secondly, CBN need to creat platform for DMB’ and other financian institutions to be more savvy in Fintect Intelligent in detecting illegal transaction in crypto and others. With the revelations that cryptocurrency players engage more through peer-to-peer transactions to bypass Nigerian banking system restrictions.
Lastly, there is a huge gap in media advocacy and sensitization on the illegality of crypto and others. The CBN shoukd partner with the media and CSOs in this regards.
For us we hold it high, that for the CBN not to be caught in the narrations that accompany failure.We call for due diligence,from the apex bank to stay put on its mandate to mitigate all forms digital financial and banking scam not just cryptocurrency transactions.
