Financial Expert Advice Regulators against Approval of Cryptocurrency for Transactions

Alex Enumah in Abuja 

A financial expert, Dr. Kingsley Chibuzor has warned against the approval of cryptocurrency in Nigeria, stressing that its usage would contravene Nigeria’s existing financial regulations.

This was just as he declared support for the Central Bank of Nigeria (CBN’s) decision to prioritise the eNaira over decentralised cryptocurrencies. 

Aguoru, who is an expert in technology and digital security with extensive experience in financial systems, including the development of the 3WiDentity authentication system, emphasised that the eNaira offers a safer and more reliable digital currency option for Nigerians.

Speaking with journalists in Abuja, Aguoru noted that unlike traditional currencies, cryptocurrencies are not backed by any government authority, which introduces unique financial risks. 

He said that the eNaira, by contrast, is backed and regulated by the CBN, and provides Nigerians with a digital currency that aligns with national financial standards and ensures stability.

“The eNaira functions as a Central Bank Digital Currency (CBDC), which provides Nigerians with the benefits of digital payments while adhering to regulatory frameworks. Its value is pegged to the naira, making it a stable and secure means of transaction,” Aguoru explained.

According to him, cryptocurrencies, though innovative, exhibit high volatility and unpredictable value swings, adding that Bitcoin and other decentralised currencies have demonstrated price fluctuations that limit their effectiveness as a reliable store of value.

While highlighting critical challenges in using cryptocurrencies as a standard currency, he argued that effective currency must function as a store of value, a unit of account, and a medium of exchange.

 “In order for a currency to fulfil these functions, it must have a stable value, consistent pricing metrics, and facilitate efficient transactions. Cryptocurrencies struggle to meet these standards,” Dr. Aguoru stated

However, Aguoru acknowledged that one significant reason why many Nigerians are turning to cryptocurrencies is the perception of the Nigerian naira as an isolated currency, observing that at present, it is challenging for Nigerians to move funds directly from naira to other currencies and across borders, with many encountering difficulties in making transactions to Europe, the Americas, or even other African countries. 

He noted that this restriction, while protecting Nigeria from some sophisticated international fraud schemes, also limits financial flexibility and ease of cross-border transactions.

 Aguoru is a UK Chartered Engineer, certified European Engineer by FEANI, and an expert in Information Security with a keen focus on security of financial services and payment systems. Having both a BSc Business Computing from Teesside University UK, Master of Science in Information Security from University of Liverpool, and Doctor of Information Security from the University of East London. 

With over 20 years of experience in software engineering and cybersecurity, Aguoru has become an advocate for strengthening Nigeria’s financial regulatory infrastructure. Recently, he submitted a petition to the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC), highlighting the need for an independent regulatory body to supervise Nigeria’s financial market infrastructure and payment systems.