The Central Bank of Nigeria has revealed plans to launch its digital currency after Vice President Yemi Osinbajo, advised that cryptocurrency should be regulated not banned.
You could recall Osinbajo protested the decision of the Central Bank to ban cryptocurrency after it had become an internationally recognised means of transacting business with countries like China all following suit.
Osinbajo had said: “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 blockchain technology.
“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.
“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,”
CBN director of information technology, Rakiya Mohammed, noted that the central bank started carrying out some research in 2017 about how they could develop their own digital currency.
He said: “First is that there is no question that blockchain technology generally and cryptocurrencies, in particular, will in the coming years challenge traditional banking, including reserve 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 said at the Bankers Committee Vanguard.
“Already, remittance systems are being challenged. Blockchain technology will provide far cheaper options for the kind of fees being paid today for cross-border transfers,” he added.
