CBN fine tunes plan to legalize bitcoins

The Federal Government is fine-tuning plans to legalize crypto-currencies, like the bitcoins, in Nigeria.

The plans were revealed by the Managing Director of the Nigeria Deposit Insurance Commission (NDIC), Alhaji Umaru Ibrahim.

He disclosed that both the NDIC and the CBN have set up a committee to fine tune the possibility of legalizing Bitcoins.

Bitcoin uses peer-to-peer technology to operate with no central authority or banks.

Bitcoin is open-source, its design is public, nobody owns or controls Bitcoin and everyone can take part.

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Unlike traditional currencies like naira, the euro, etc., bitcoins are issued and managed without any central authority.

It is not managed by any government, company, or bank.

This makes bitcoins to very resistant to wild inflation, devaluation, import policies, currency fixing and corrupt banks.

It is a true floating currency whose value is determined by demand and supply.

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Ibrahim made the remark on the use of bitcoins for digital transactions at the 2016 Workshop for Financial Correspondents in Kaduna.

He said: “On our part, we have constituted a committee together with the central bank to have an in-depth study of this phenomenal bitcoin.

“We will look at its advantages and disadvantages.

“We will look at what it means for the payment system and what it means for the safety and security of customers.

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“We will also look at what it means for money laundering, anti-corruption, and crime.

“We will evaluate its measurement as an alternative to money/near money instruments for the economy.

“But we need a lot of education to do this.

“I’m calling on you (the media) to educate yourselves about all of this so you can educate the public.”

Ibrahim said with the bitcoin, it has included block-chain technology-based products in the market.