The Vice President of the Federal Republic of Nigeria, Prof Yemi Osibanjo has called on the Central Bank of Nigeria to consider regulating cryptocurrencies rather than banning the digital currencies in Nigeria.
In a trending quote during the Bankers' Commitee Vanguard in Lagos, Friday, Prof Osibanjo noted that "Cryptocurrencies in the coming years will challenge traditional banking, including reserve banking, in ways that we cannot yet imagine, so we need to be prepared for that seismic shift."
The Vice President added that there is a need to regulate the digital assets in a way that Nigeria can benefit from them while still controlling the criminal activities that is likely to follow the adoption of digital currencies.
"I fully appreciate the strong position of the CBN, SEC, and some of the anti-corruption agencies on the possible abuses of cryptocurrencies and their other well-articulated concerns, but I believe that their position should be the subject of further reflection.
"Regulatory bodies must act with knowledge and not fear as the digital currencies disruption will only make room for efficiency and progress.
“The point I am making is that some of the exciting developments we see call for prudence and care in adopting them, but we must act with knowledge and not fear", Prof Osibanjo added.
The vice president is reacting to the recent clampdown on cryptocurrencies by the Central Bank of Nigeria.Cryptocurrencies in the coming years will challenge traditional banking, including reserve banking, in ways that we cannot yet imagine, so we need to be prepared for that seismic shift. pic.twitter.com/tbIR8eah2s
— Prof Yemi Osinbajo (@ProfOsinbajo) February 26, 2021
CBN had recently ordered the Commercial Banks and other Financial Institutions to close down accounts associated with cryptocurrency transactions which the apex later clarified was not a new order but a reminder of a directive published in 2017.
Mr Osita Nwanisobi, Acting Director of Communications, CBN in the statement captured in The Guardian https://t.guardian.ng/news/nigeria/why-we-banned-cryptocurrency-trading-in-nigeria-cbn/ while explaining the reason for the clampdown noted that cryptocurrencies do not have real values and cannot be trusted to generate returns on investments adding that "evidence now suggests that some cryptocurrencies have become more widely used as speculative assets rather than as means of payment, thus explaining the significant volatility and variability in their prices."
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