The Governor of the Central Bank of Nigeria, Godwin Emefiele has recently defended the apex bank’s decision in excluding cryptocurrencies from Nigeria’s financial ecosystem.

Appearing before a joint Senate Committee on Banking, Insurance and Other Financial Institutions; ICT and Cybercrime, Godwin Emefiele stated that the Crypto ban was in the best interest of Nigerians.

According to a report by an online media outlet, while addressing the Senate committee, Godwin Emefiele remarked,

“Cryptocurrency is not legitimate money. Cryptocurrency has no place in our monetary system at this time and cryptocurrency transactions should not be carried out through the Nigerian banking system.”

READ: CBN crypto ban and its ramifications for Nigerian banks

“Cryptocurrency is used to describe the activities of players in an electronic dark world” – CBN Governor. pic.twitter.com/2VQuY3HbX7

— YabaLeftOnline Media (@yabaleftonline) February 25, 2021

The head of the apex bank affirmed Nigeria’s central bank resolve in continuing its surveillance and deeper understanding of the crypto ecosystem, buttressing that its major objective remains to educate Africa’s largest economy on emerging financial risks and protect Nigeria’s financial system from the activities of money launderers, currency speculators, and foreign-based fraudsters.

Recall in a press release dated, the 7th of Feberuary 2021, the CBN had explained in detail the motives for its directive to Deposit Money Banks (DMBs) and other financial institutions to desist from transacting in and with entities dealing in cryptocurrencies.

READ: CBN claims no immunity for Emefiele as it fires back at NESG

“Due to the fact that cryptocurrencies are largely speculative, anonymous, and untraceable, they are increasingly being used for money laundering, terrorism financing, and other criminal activities. Small retail and unsophisticated investors also face a high probability of loss due to the high volatility of the investments in recent times.

“In light of these realities and analyses, the CBN has no comfort in cryptocurrencies at this time and will continue to do all within its regulatory powers to educate Nigerians to desist from their use and protect our financial system from the activities of fraudsters,” the CBN stated.

READ: CBN’s Emefiele explains why banks restructured N7.8 trillion loans to customers

What you should know: The CBN, some weeks ago issued a circular prohibiting banks and other financial institutions from carrying out transactions in cryptocurrencies or facilitating payments for crypto exchanges.

• The CBN’s directive has since gotten very harsh reactions on social media with many condemning the policy as a deliberate attempt by the government to impoverish young Nigerians who have been able to create wealth for themselves through crypto trading.
• Interestingly, Nigeria along with other countries ranked as the worst countries to start a career do not wholly accept or legally recognize cryptocurrency and other digital assets.

Recently, a growing number of powerful investors have been trying to cash out at the world’s most popular crypto market, as Bitcoin trades above the $50,000 price level.

What you must know: Data obtained from Whale Alert, a crypto analytic tracker, revealed that an unknown entity transferred 8,000 BTC (399,897,857 USD) from an unknown wallet to Coinbase, suggesting that the whale plans to sell such quantity on the world’s most valuable crypto exchange.

READ: Bitcoin miners are outrageously rich, earn $4 million per hour

🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 8,000 #BTC (399,897,857 USD) transferred from unknown wallet to #Coinbase

Tx: https://t.co/kdBweaZlGw

— Whale Alert (@whale_alert) February 25, 2021

However, it’s critical to note that the number of Bitcoin accumulation addresses (which have received at least two non-dust transfers and which have not spent funds) has been increasing since early 2018, thereby suggesting that it might be an isolated event.

READ: Computers might steal Satoshi Nakamoto’s Bitcoin fortune

At the time of writing this report, Bitcoin traded at $50,349.11 with a daily trading volume of $60 billion. Bitcoin is up 0.05% for the day.

Prevailing market conditions at the Bitcoin market reveal that large crypto investors and traders, typically known as Bitcoin whales, are moving large stacks of Bitcoins.

• Just a matter of days after the world’s first flagship crypto ETF started trading, its holdings are at 8,288 BTC – 2,251 were added on the 22nd of February.
• The ETF’s asset under management has crossed $500 million, currently sitting at $564 million.

READ: CBN Governor calls Crypto illegal money

Just a few days after the world's first #Bitcoin ETF started trading, its holdings are at 8,288 BTC – 2,251 were added yesterday alone.

The ETF's AUM has crossed half a billion USD, currently sitting at $564M.

Charts: https://t.co/gupWslpJDR pic.twitter.com/FMMFSDZJ7Z

— glassnode (@glassnode) February 23, 2021

Should you still buy?

Nairametrics advises against investing a large pool of capital into a volatile financial market like Bitcoin. Instead, an investor or trader can allocate smaller amounts periodically over time, or better still, seek the counsel of a certified financial advisor.