IMF expresses concern over use of cryptocurrencies

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The resident representative of the International Monetary Fund (IMF) in Nigeria, Mr. Ari Aisen, has described as “a concern” the use of cryptocurrencies and called for caution.

Aisen who stated this at a virtual briefing on the recently published 2020 Article IV IMF Staff Report for Nigeria, said the concern on the use of cryptocurrencies is the reason many central banks are cautious about the development.

“The issue with some of the cryptocurrencies is that perhaps some care should be taken about their activities. The use of cryptocurrencies is a concern.

“That is why some central banks, not only in Nigeria, have these concerns about what kind of activities these cryptocurrencies are put and how best to monitor those activities,” he said.

He noted that some of the activities might be illegal or related to money laundering and drug peddling.

This, he said, was why many monetary authorities had been concerned about how best to supervise and increase their oversight regarding the use of cryptocurrencies.

Aisen advocated for unification of the foreign exchange rates in Nigeria so as to make the management of forex more transparent across the country.

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