ABCON urges FG to tackle cryptocurrencies

Association of Bureaux De Change Operators of Nigeria (ABCON) has called on the Central Bank of Nigeria (CBN) to introduce measures that will counter the advantages of cryptocurrencies exchanges as a channel for Diaspora remittances.

Making the call in its Quarterly Economic Review for Q1’2021, ABCON stated that such measures are necessary to redirect Diaspora remittance inflow away from cryptocurrency exchanges to official channels.

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Whilst commending the CBN for the N5/$ rebate scheme introduced to encourage Diaspora Nigerians to use official channels for remittance transfers, ABCON noted the need to address other issues driving the patronage of cryptocurrency exchanges for a remittance transfer.

ABCON said: “Migrants sending money across borders to their families prefer the minimal transaction costs of cryptocurrency exchanges against the exorbitant costs of traditional money transfer companies like Western Union.

“Cryptocurrency transactions are faster than the conventional transfers, which require passing through banks’ reliant SWIFT, the sluggish, half-century-old interbank messaging system that handles cross-border payments.

“Strategies that satisfy the most sensitive of these advantages of cryptocurrency exchanges must be introduced to redirect flows to the official channel.”