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Why the CBN's stance on crypto is shaky - STEARS

NOVEMBER 22, 2021

What you need to know about the CBN’s crackdown on crypto.

BY  Carl T. Macaulay

The Central Bank of Nigeria (CBN) is worried about the growth of crypto.

It's worried about the broader trend of decentralisation sweeping finance and threatening its ability to control the money supply. It's concerned about the growing adoption of digital legal tender that could make it extremely difficult to administer monetary policy effectively. But most importantly, it is worried about the devaluing naira and the limited trust that its citizens have in their official fiat currency.

On some level, it's not a worry but a deep-seated fear.

Being afraid of global trends like crypto is not surprising. As is typical of new technologies, crypto is being met with the same level of scepticism that many new technologies face. In some circles, some people think that the CBN has a limited understanding of crypto. But I beg to differ. The sheer number of economists, technologists and policymakers at the CBN suggest

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