The Vice President, Yemi Osinbajo recently bares his mind on the issue of banning cryptocurrencies in the nation. He advised the Central Bank of Nigeria (CBN) and bankers not to act in fear but to act with knowledge.
He made it known that he really appreciated the stand of the Securities Exchange Commission (SEC), the apex bank, and other anti-corruption agencies on their stance on banning cryptocurrencies but also said, all should be an open reflection.
He said that there is a role for regulation in which SEC and other regulatory bodies could use a robust regulatory regime that addresses these serious concerns.
According to him, “it should be thoughtful and knowledge-based regulation, not prohibition. Some of the exciting developments we see the call for prudence and care in adopting them. He said that banning cryptocurrency trade in Nigeria may refer to the act of “killing the goose that might lay the golden eggs”.
He refers to comments that blockchain technology experts have always made that both blockchain technology and cryptocurrency will one day challenge traditional banking, including reserve central banking.
Since remittance systems are being challenged today, Osinbajo said there’s no way traditional banking and the way people invest today will not have other options. Blockchain technology will offer newer and cheaper options to the kind of fees being paid today for cross-border transactions.
He alluded to the challenge that the SWIFT system is facing from the new system called Ripple, which is a blockchain distributed ledger technology with its own crypto tokens.
Nigeria must wake up to the fact that there are ranges of digital assets spawned daily from blockchain technology. Some of these will challenge traditional finance. “So, we must act with knowledge, not fear,” Osinbajo said.