BusinessEconomyGeneral NewsIslamNews
NIGERIA: Why cryptocurrency must not be banned, Islamic scholars tell CBN, enlighten Muslims at UNILAG ALUMNI event
*Say it’s here same way other virtual communications app came and were accepted
*Highlight imperativeness of adopting digital currency technology in Nigeria
*Say Vice President Osinbajo’s call for regulating the process in order
By BASHIR ADEFAKA
“The CBN should have conducted an opinion poll before doing what it did. The truth is, they now know that Nigerian commercial banks are fast becoming irrelevant to the people by their lack of concern for their financial needs and they are rather going into digital currency hence, the ban to safe the underperforming commercial banks who bank for themselves and not the people by their wickedness economically under-developing their own people while the West, which enjoy the bad banking behaviour, are busy using their own sponsored NGOs to write bad reports of how majority of Nigerians are living below poverty level,” respondent at Computer Village Ikeja, Lagos said.
Virtually a week after the Vice President Yemi Osinbajo criticised the Central Bank of Nigeria’s policy banning Cryptocurrency, that is digital currency, in Nigeria on grounds clearly stated thus calling for regulation of the system rather than throwing the baby away with bathwater, some Islamic scholars have come out behind the nation’s number-two citizen backing the position he took.
This happened while reputable financial scholars put together in a virtual webinar by the University of Lagos Muslim Alumni (UMA) were x-raying the digital currency technology according to Islamic perspectives and attempting to enlighten as well as educate Muslims on the financial system.
The event came just as some Nigerians in the streets told The DEFENDER at Computer Village Ikeja, on Wednesday, their resentment at the ban on cryptocurrency by the CBN with one of them bitterly expressing that, “The CBN should have conducted an opinion poll before doing what it did. The truth is, they now know that Nigerian commercial banks are fast becoming irrelevant to the people by their lack of concern for their financial needs and they are rather going into digital currency hence, the ban to safe the underperforming commercial banks who bank for themselves and not the people by their wickedness economically under-developing their own people while the West, which enjoy the bad banking behaviour, are busy using their own sponsored NGOs to write bad reports of how majority of Nigerians are living below poverty level.”
Themed, ‘Digital currency technology: Islamic perspective and emerging issues’, one of the scholars told while impression should not be created as if the cyber-based financial system is evil that must be thrown away or distanced from, adding that issues necessitating the policy banning should better be addressed rather than outright ban.
“We thought it fit to step in to provide a platform for enlightenment and education, so that all of us will understand and get familiar with digital currency and also understand the perspectives of Islamic finance and begin to look forward to how the currency could be regulated because digital currency is here the same way other virtual communications app came and were accepted,” he said.
According to the stakeholders, the adoption of digital currency technology has become imperative for public to be enlightened and educated.
Speaking during the webinar, the President of UNILAG Muslim association (UMA), Dr. Shuaib Salis, said Crypto, digital or virtual currencies popularity has surged of recent, when the Central Bank of Nigeria (CBN) put a ban on cryptocurrency.
He said there is a need to enlighten and educate people on digital currency because not so many are familiar with the currency including Muslims.
“We thought it fit to step in to provide a platform for enlightenment and education, so that all of us will understand and get familiar with digital currency and also understand the perspectives of Islamic finance and begin to look forward to how the currency could be regulated because digital currency is here the same way other virtual communications app came and were accepted.
Adding that, Islam has perspective on virtually every issue in the world as Allah says in Q6vs38 ‘we have not left anything unmentioned’.
The chairman of the occasion, Dr. Muiz Banire, commended the association for creating a platform where people can learn more about crypto currency.
Banire, former AMCON Chairman, said the policy of the central bank of Nigeria on cryptocurrency is not in the best interest of the citizen.
“The issue of cryptocurrency is controversial in the country in the recent weeks, The Central bank of Nigeria decided with their low wisdom to stop money deposit from the operators of cryptocurrency.
“I was one of the first person to write against it though I don’t have confidence in respect of it but the reality of the matter is that the basic knowledge I have on it does not call for absolute ban on the currency.
He added that the central bank of Nigeria in recent time as assume the role of dictatorship, more or less bulling all sector of the economy particularly the financial sector.
“In my very strong view, no country operate successfully in this type of bullying atmosphere, this is strange to a lot of us no engagement or negotiation.”
He added that the lines of argument on cryptocurrency is the unknown identity of the operators which poses danger to all by the way of the use for criminal purpose which is an argument that is plausible but the reality of the situation is that there are always better ways of addressing a default. Because several of the youths involve in cryptocurrency will end being unemployed which will enhance social dislocation and insecurity.
He said there are better ways to address the issue as done in United State and United Kingdom by regulating the process as advocated by the Vice president, Prof. Yemi Oshibajo.
“Rather than waking up one morning, pulling people out of the process. For me what we need to do is to regulate the identity of the operators and how it is been operated.”
The associate Director, EY, Akeem Ogunseni defined digital currency as an any form of currency that is not in it physical form and can be use as a medium of storage value or a medium of exchange.
He said today digital currency came with different perspectives and the idea behind cryptocurrency in terms of transaction is that any transaction made is publicly available for all participant in the network which is not done in the conventional banking. Meaning every participant have the priviledged to see the kind of transaction that has taken place. Likewise transaction cannot not be reverse has done in conventional banking system except if the recipient is willing to transfer back to the person.
He added that cryptocurrency is strong, secure and reliable. “It has come to stay and it will continue to gain prominent from one country to another’
He encouraged those who want to participate in the ecosystem to create time to learn about it.
MD/CEO TrustBanc Arthur, Dr. Bashir Oshodi said Shariah scholars are yet to agreed weather digital money is accepted.” Most of the scholars said it is not allowed because it has not met the conditions. The argue that it has not protected wealth to a large extent while few scholars that accepted digital currency buttress their point that even the paper money was also rejected before it was accepted globally.
The Chief Executive Officer of Marble Capital Ltd, Mr. Akeem Oyewale said the reason regulators are scared and they are banning outright digital currency is because they are afraid of loss of investment that citizens are exposed to.
He added that regulators are also afraid because cryptocurrency enhances money laundering which can be use for terrorism financing and criminal activities.
