The International Monetary Fund (IMF) has raised eyebrow over the usage of cryptocurrencies, especially in Nigeria, a situation that had recently made the Central Bank of Nigeria (CBN) to ask commercial banks to stop attending to them
The Resident Representative of the IMF in Nigeria, Ari Aisen, in a virtual briefing today, February 18 on the recently published 2020 Article IV IMF Staff Report for Nigeria, recalled that many central banks around the world have taken similar policy decisions as the CBN.
“The issue with some of the crypto currencies is that perhaps some care should be taken about their activities. The use of crypto currencies is a concern. That is why some central banks, not only in Nigeria have these concerns about what kind of the activities these crypto currencies are put and how best to monitor those activities.
“Some of them may be illegal activities and may be related to money laundering, even drugs or other illegal things. It is natural that the monetary authorities will be concerned about how best to supervise and increase their oversight regarding the use of crypto currencies.
“The CBN is thinking closely about its trade-offs and is trying to design the best policy in the interest of the payment system and the sustainability of the financial sector.”
The IMF official called for the “unification of foreign exchange rates,” to make the management of foreign exchange (forex) more transparent.
On forex scarcity, Aisen said that there has been some level of scarcity of foreign exchange out there and that it would be useful to unify rates to allow it flunctuate and to make forex more accessible to those who needed them.