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Regulate Cryptocurrency Don’t kill it the Vice President Tells CBN

The Vice President of Nigeria, Yemi Osibanjo said cryptocurrencies should be regulated rather than ‘killing’ it.

He made these remarks during a keynote at the CBN event on February 26th 2021.

Earlier this month, the Central Bank of Nigeria prohibited banks and other financial institutions from processing the crypto transaction. this directive made banks to shut down banks account of customers who had trader in cryptos such as Bitcoin, Etherreum and its likes

Both CBN and the Securities and Exchange Commission (SEC) identifies the risk within the digital asset sector, stating the obvious that cryptocurrencies are issued by unknown and unregulated entities and its increasingly being used to conduct several illegal activities including money laundering, terrorism financing and it likes.

However, Osibanjo believes the CBN and other agencies should consider regulating financial technology rather than shutting it down.

“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,” he said

“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

Recently, The International Monetary Fund (IMF) estimates that central bank currencies will face pressures if it fails to digitise the financial system and keep pace with technological change. 

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