Nigeria's Vice President expresses optimism about crypto enforcement.

 

• Vice President Yemi Osinbajo has given the crypto community some hope on what can be done to influence the government’s crypto decisions.
• He said yesterday the government should develop a robust regulatory regime that is thoughtful and knowledge-based instead of adopting a policy that prohibits Cryptocurrency operations in the country.
• He also urged Nigerians to act with knowledge and not fear while emphasising the need for monetary authorities to rethink their stand on cryptocurrencies.

Following the Central Bank of Nigeria's decision to ban cryptocurrencies from Nigeria's financial environment, Vice-President of Nigeria, Prof. Yemi Osinbajo, has given the crypto group some optimism.

He encouraged Nigerians to act with wisdom rather than terror in his keynote address delivered electronically at a one-day economic summit themed "Bankers' Initiative for Economic Growth."

Prof. Osinbajo, speaking regarding the CBN's cryptocurrency prohibition, said that although he completely appreciates the CBN's, the Securities and Exchange Commission's (SEC), and certain anti-corruption agencies' clear positions on alleged cryptocurrency violations, their positions should be reconsidered.

"There is a role for regulation here. And it is in the place of both our monetary authorities and SEC to provide a robust regulatory regime that addresses these serious concerns without killing the goose that might lay the golden eggs.

"So it should be thoughtful and knowledge-based regulation, not prohibition. 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. Osinbajo also emphasised the need for monetary authorities to rethink their stand on cryptocurrencies, saying, "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.

"Already remittance systems are being challenged. 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.

"There are, of course, a whole range of digital assets spawned daily from block-chain technology. Decentralized 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.”