Saturday, 27 February 2021 05:26

Osinbajo to CBN: Cryptocurrency ban not wise

Rate this item
(0 votes)

Vice President Yemi Osinbajo has called for the regulation of cryptocurrency transactions in the country, saying banning it outright would not be a better idea.

Osinbajo made the remark while delivering a keynote address at the CBN Bankers Committee Economic Summit held virtually on Friday, according to a statement issued by Laolu Akande, his spokesperson.

“Rather than adopt a policy that prohibits cryptocurrency operations in the Nigerian banking sector, we must act with knowledge and not fear and develop a robust regulatory regime that is thoughtful and knowledge-based,” Osinbajo said.

While emphasising the need for monetary authorities to rethink their stand on cryptocurrency, Osinbajo said “there is no question that blockchain technology generally and cryptocurrencies, in particular, will in the coming years challenge traditional banking, including reserve (Central) banking, in ways that we cannot yet imagine.”

“So, we need to be prepared for that seismic shift. And it may come sooner than later,” he added.

Cryptocurrency controversy

The vice president’s comments come about three weeks after CBN on February 5 directed all financial institutions in the country to close all cryptocurrency-related accounts and transactions.

The ban sparked controversies amidst concerns over its effect on fintechs, and the rising potential for the Nigerian economy. Nigeria is the world’s second-biggest user of virtual currencies.

Days after, Securities and Exchange Commission said it had also suspended the approval of cryptocurrency and related products.

“Cheaper options”

The vice president noted that already remittance systems are being challenged and that blockchain technology will provide far cheaper options to the kind of fees being paid today for cross-border transfers.

“I am sure you are all aware of the challenge that the traditional SWIFT system is facing from new systems like Ripple which is based on the blockchain distributed ledger technology with its own crypto tokens,” he said.

He said there are, of course, a whole range of digital assets spawned daily from block-chain technology and that decentralised finance, using smart contracts to create financial instruments, in place of central financial intermediaries such as banks or brokerages, is set to challenge traditional finance.

The likes of Nexo finance offer instant loans using cryptocurrency as collateral. Some reserve banks are investigating issuing their own digital currencies, Osinbajo said.

 

PT

December 25, 2024

Investors add N500bn profit on Christmas Eve to the N1trn raked in last week as…

The Nigerian Exchange (NGX) is ending the year on a high note, with investors adding…
December 20, 2024

Atiku questions alleged hack of NBS website, says timing suspicious

Former Vice President Atiku Abubakar has raised concerns over the recent claim that the website…
December 25, 2024

Why Christmas and the birth of Jesus are all about hope, peace, joy and love

The Advent season is about preparing our hearts, minds and souls to welcome the birth…
December 21, 2024

‘Professional Back-Scratchers’ charge up to $130 per hour

The Scratcher Girls is an unconventional relaxation therapy studio that charges clients up to $130…
December 21, 2024

NAFDAC busts illegal rice repackaging operations in Nasarawa, Abuja

The National Agency for Food and Drug Administration and Control (NAFDAC) has cracked down on…
December 25, 2024

What to know after Day 1035 of Russia-Ukraine war

WESTERN PERSPECTIVE Ukraine says Russia used 60 drones in overnight attack Ukraine said Russia had…
December 25, 2024

Stem cell therapy to correct heart failure in children could 'transform lives'

Renowned visionary English physician William Harvey wrote in 1651 about how our blood contains all…
December 17, 2024

Ademola Lookman named 2024 CAF Men’s Player of the year. These players won in other…

Ademola Lookman, the Super Eagles winger, was crowned the 2024 CAF Men’s Player of the…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Prof Wale Are Olaitan: Editorial Consultant; Femi Kawonise: Head, Production & Administration; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2024 NewsScroll. All rights reserved.