Yemi Osinbajo, the Vice President of Nigeria, recently asked the Central Bank of Nigeria (CBN) to not completely ban cryptocurrency. Osinbajo asked CBN and the Securities and Exchange Commission of Nigeria to consider regulating the operations of blockchain-based technologies and cryptocurrencies.
Yemi Osinbajo to CBN: Regulate, Don’t Prohibit Cryptocurrency
On February 26, during a one-day special summit with the theme ‘CBN/Bankers’ Committee’s Initiative for Economic Growth,’ Osinbajo spoke about the Nigerian economy to chief executive officers of the bank.
While addressing the threats of trading in cryptocurrencies, he said that he completely agrees with the positions of CBN, SEC, and other regulatory authorities. However, he added that the right thing to with the cryptocurrency issue was to regulate their operations, not to prohibit them.
Two weeks ago, the Central Bank of Nigeria, prohibited all the banks and financial institutions from executing any kind of trade on cryptocurrencies. Along with that, CBN restricted banks to provide any services to the companies involved in the crypto business.
Godwin Emefiele, the Governor of CBN, said that the decision to ban cryptocurrency trading for all financial institutions and banks is taken in the best interest of the Nigerian depositors and the financial system of the country.
Osinbajo stated about the positions of CBN and SEC:
“There is a role for regulation here. And it is in the place of our monetary authorities and SEC to provide robust regulatory rules that address these serious concerns without killing the goose that lays the golden eggs.”
Cryptocurrencies and the Traditional Finance System
Discussing trending topics like blockchain technology, cryptocurrencies, and digital assets in global finance, Osinbajo said:
“First is that there is no question that blockchain technology generally, and cryptocurrencies, in particular, will become a challenge for traditional banking in ways that you cannot get to imagine. “
“So, we need to be prepared for that sensitive shift. And sooner or later, remittances can have a challenge too because blockchain technology will provide far cheaper functions to the kind of fees being paid today for cross-border transfers to banks.”