Islamic Financial scholars have thrown their weight behind the nation’s Vice President Yemi Osinbajo, backing the position he took in criticising the Central Bank of Nigeria’s policy on the ban on Cryptocurrency in Nigeria.
The scholars call for the regulation of the system rather than discarding it, at a virtual conference of Islamic scholars organised by the University of Lagos Muslim Alumni (UMA).
The event had Islamic scholars discussing the digital currency technology according to Islamic perspectives and enlightening Nigerians on the financial system.
Themed, ‘Digital currency technology: Islamic perspective and emerging issues’, most of the scholars agreed that negative impressions should not be created around the cyber-based financial system.
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 was a need to enlighten people on digital currency, because not so many are familiar with the currency.
“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.
He said Islam has perspective on every issue in the world as Allah says in Q6vs38 ‘we have not left anything unmentioned’.
The chairman of the occasion, Dr. Muiz Banire, said the policy of the central bank of Nigeria on cryptocurrency is not in the best interest of the citizens.
The former AMCON Chairman said the central bank of Nigeria in recent time has assumed an autocratic role, bullying all sectors of the economy, particularly the financial sector.
Regulate the identity of the operators
He said the Central Bank took the decision for fear of it being hijacked for criminal purposes, arguing that the CBN should have regulated the identity of the operators and the operation.
By regulating it, he said it would prevent several youths involved in it from becoming unemployed, which could enhance social dislocation and insecurity.
He said the government should find better ways of addressing the issue as done in the United State and as advocated by the Vice president, Professor Yemi Oshibajo.
The associate Director, EY, Akeem Ogunseni defined digital currency as any form of currency that is not in its physical form and can be used as a medium of storage value or a medium of exchange.
He said today digital currency behind cryptocurrency means that any transaction made is publicly available for all participants in the network which is not done in conventional banking.
He said the implication is that every participant has the privilege to see the kind of transaction that has taken place and transactions cannot not be reversed as has done in conventional banking systems.
He said that cryptocurrency is strong, secure and reliable. “It has come to stay and it will continue to gain prominence from one country to another.”
The Chief Executive Officer of Marble Capital Ltd, Mr. Akeem Oyewale argued that the reason regulators are scared is because they are afraid of loss on investment that citizens are exposed to.
He said that regulators are also afraid because cryptocurrency enhances money laundering which can be used for terrorism and financing criminal activities.
MD/CEO TrustBanc Arthur, Dr. Bashir Oshodi said Shariah scholars are yet to agree whether digital money is accepted.
He adds that some of the scholars opined that digital currency has not met the conditions of the protection of wealth, while other scholars that accepted digital currency buttress their point that even the paper money was also rejected before it was accepted globally.
Lateefah Ibrahim
