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Central Bank Of China Bans Cryptocurrency Transactions Over Risk Claim

China’s Central bank has banned the transactions of Cryptocurrency based on claims of risk. The People’s Bank of China said the transaction of bitcoin and other cryptocurrencies have created “money laundering, illegal fund-raising, fraud, pyramid schemes, and other illegal and criminal activities.”.

China once Ban cryptocurrencies
Ban cryptocurrencies

The Bank gave other reasons for its latest clamp on digital currency. The bank says “they do not have legal tender status” and therefore “cannot be circulated as currency in the market.”

Highly populated China has been monitoring cryptocurrency trading for a long time now. Its Central bank around May issued warnings on mining Cryptocurrencies based on the large energy it requires.

Bitcoin ban: These are the countries where crypto is restricted or illegal | Euronews
transaction ban on cryptocurrency

Reports of the ban have adversely affected crypto value, as prices have slumped after the news. The ban will certainly help China’s ongoing energy crisis as reported by Bloomberg.

Elsewhere, the Central Bank Of Nigeria has (CBN) introduced a new compulsory digital currency called the e-Naira. The Apex bank will be unveiling the legal tender on October 1st 2021. This is after it initially made plans for its creation on August 30th 2021.

CBN

Recent reports point to a compulsory adoption of the country’s new digital payment E-Naira. CBN’s director of payment system management, Musa Itopa Jimoh in an interview on September 20th 2021 provided more clarification.

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Jimoh explained that the new digital currency must be accepted by all merchants and businesses as legal tender in Nigeria.

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Musa Itopa Jimoh, CBN director of payment

“Today, anywhere you present naira to pay, compulsorily it must be accepted because that is our fiat currency. So, the same way naira is accepted that you can’t reject it, is the same way e-naira must be accepted,” He said.

This new development comes from the recent closure of Cryptocurrency related bank accounts in Nigeria by CBN. Its Governor Godwin Emefiele believes the new digital currency will act as a wallet for bank accounts. while enabling a cheaper and faster means for remittance inflows.

Cryptocurrency like other means of payment will need some form of regulatory control else they would go bizarre. China’s central bank doesn’t only want to crack down on the illegal use of digital currency; it also trying to overturn its energy crisis.

 

 

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