- The Senate has reacted to the ban on cryptocurrency by the CBN
- The upper chamber on Thursday, February 11, summoned by the apex bank and SEC for a briefing
- Senators will like to know the reasons and considerations given before the CBN took its decision
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The governor of the Central Bank of Nigeria (CBN) Godwin Emefiele, and the director-general of the Securities and Exchange Commission (SEC), Lamido Yuguda, have been summoned by the Senate to its floor for a briefing on the recent ban on cryptocurrency.
Both Emefiele and Lamido will be meeting with the Senate's committee on banking, insurance, Other Financial Institutions (OFIs), ICT, cybercrimes, and capital markets to explain to it their reasons for effecting the ban.
The upper chamber made it known to senators during its plenary on Thursday, February 11, that briefings from the duo will assist the Senate to “determine the opportunities and threats of the cryptocurrency on the nation’s economy and security.”
The motion for the summon was sponsored by Senator Istifanus Dung Gyang and Senator Adetokumbo Mukhail Abiru.
Meanwhile, the Digital Rights Lawyers Initiative (DRLI) had taken steps to reverse CBN's directive.
To achieve this, the group had approached the Federal High Court in Lagos, urging the court to quash the letter prohibiting banks from dealing in cryptocurrencies and closing down of suspected bank accounts.
Going further, it asked the court for a perpetual injunction restraining the apex bank from regulating and/or further regulating virtual currencies/ cryptocurrencies in Nigeria.
According to DRLI, the CBN lacks the power to regulate cryptocurrencies.
The CBN and the Securities and Exchange Commission (SEC) are the first and second defendants in the suit marked FHC/L/CS/ 188/2021.
In another report, Tesla Inc., the company belonging to the world's richest man, Elon Musk, had invested $1.5 billion (about N571 billion) in Bitcoin.
The company is also expected to start accepting the cryptocurrency as payment.
Legit.ng gathered prices for the digital asset skyrocketed to a record above $43,000 after the news of the bold investment.
Onyirioha Nnamdi is a graduate of Literature and English Language at the University of Lagos. He is a Politics/Current Affairs Editor who writes on news and political topics for Legit.ng. He brings into his reporting a wealth of experience in creative and analytical writing. Nnamdi has a major interest in local and global politics.