The Vice President, Prof. Yemi Osinbajo, has asked the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) to regulate the operations of cryptocurrencies and blockchain technologies.
Osinbajo, who spoke yesterday during a one-day special summit on the economy by bank chief executive officers with the theme ‘CBN/ Bankers’ Committee’s Initiative for Economic Growth’, said he fully agreed with the positions of SEC, CBN and other anti-corruption agencies on the dangers of trading in cryptocurrencies, but the right thing to do was to regulate their operations.
The CBN had two weeks ago banned banks and other financial institutions from trading on cryptocurrencies or providing banking services to companies involved in the business.
CBN governor, Godwin Emefiele, said the decision to prohibit deposit money banks, non-banking institutions and other financial institutions from facilitating trading and dealings in cryptocurrency was in the best interest of Nigerian depositors and the country’s financial system.
Chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC), Prof. Bolaji Owasanoye (SAN), said virtual assets and cryptocurrency can be used for terrorism financing and kidnapping.
He said cryptocurrency and other virtual means are risky for Nigeria which is grappling with security challenges.
Likewise, Director/CEO, NFIU, Tukur Moddido, kicked strongly against cryptocurrencies, pointing out that it failed the critical tests of vulnerability and risks.
According to Modibbo, the NFIU, through its Cyber Intelligence, stopped a scam of roughly $3 million recently.
However, Osinbajo said their positions should be the subject of further reflection.
“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,” he said.
He said some of the exciting and very well articulated developments received from regulatory authorities call for prudence and care in adopting them.
“These are very well articulated by the regulatory authorities. But we must ensure that we are in a position to prevent any of the adverse side effects, like the criminal act that may arise in the course of adopting any of these options,” he advised.
Osinbajo disclosed that blockchain technology, digital assets and cryptocurrencies remain very topical issues in global finance.
“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,” he said.
Continuing, the Vice President said that the traditional switch system is equally facing challenges because there are a whole lot of digital assets formed daily, from Blockchain technology.
“Clearly, the future of money and finance, especially for traditional banking, must be exciting as it is frightening. We see in many other sectors disruptions make for efficiency and profit,” he said.
Source: THE NATION
