Ebo says CBN ban cannot stop investment in cryptocurrency
Head Retail investment, investment management group at Chapel Hill Denham, Ayodeji Ebo has stated that what the Central Bank of Nigeria (CBN) is trying to do with the cryptocurrency ban is to prevent money laundering as well as to also protect investors but it would be better if studies are carried out on the cryptocurrency to see how it works.
Ebo explained that what the apex bank has done is to ban companies that are directly creating those platforms but it would have been better if a word of caution was put in place and banks urged to do their due diligence before opening an account for technology platforms.
He noted that the banning of cryptocurrency exchanges should have been given much time before taking the action.
“I may not understand how the investment works, but I know the ban by the CBN cannot affect total investors’ interest in the instrument because there are other ways. It is not totally in its control.”
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He further stated that looking at it from even the SEC angle, SEC is trying to review and study the instrument to see whether it can be admissible. Although it looks like a security, most times they are also trying to protect investors and get them to understand what they are putting their money into.
“My view will be that further studies would have been done before placing the entire exchange on a ban but I do not see this move as stopping investment in cryptocurrency because there are other means that investors who wish to invest in cryptocurrency can go about it.” Ebo explained.
Recall that the CBN recently placed a ban on crypto exchange in Nigeria, citing the need to protect Nigerians.