Cryptocurrencies: Why Nigeria should regulate but not kill blockchain tech ─Osinbajo

*Vice-President (Prof.) Yemi Osinbajo declares he fully appreciates the strong position of the Central Bank of Nigeria, Securities and Exchange Commission, and some anti-corruption agencies on the possible abuses of cryptocurrencies, but their well-articulated concerns should be the subject of further reflection

Isola Moses | ConsumerConnect

Amid the recent flurry of concerns, observations, directives and outright bans on cryptocurrency accounts and transactions across the world, Nigerian Vice-President (Prof.) Yemi Osinbajo has added his voice to the ongoing ‘crypto conversations’, and said that cryptocurrencies should be regulated in the country instead of “killing” it outrightly.

The Vice-President stated this Friday, February 26 while presenting a keynote at the Central Bank of Nigeria (CBN)/Bankers’ Committee’s Initiative for Economic Growth, Channels report said.

Hitherto, the Bankers’ Bank had reaffirmed its oppositional stance on cryptocurrencies by placing huge restrictions on its trade within the country’s banking and financial ecosystem.

The CBN noted that cryptocurrencies are “issued by unknown and unregulated entities, and are increasingly being used to conduct many illegal activities including money laundering, terrorism financing, purchase of small arms and light weapons, and tax evasion.”

Osinbajo, nonetheless, suggested the CBN and other regulatory agencies, such as the Securities and Exchange Commission (SEC), rather should consider regulating the financial technology rather than totally shut it down in Nigeria.

He said: “It is clear to the government that we must find a way of moving the Nigerian digital economy into overdrive.”

Osinbajo further explained his position: “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.

“Clearly the future of money and finance, especially for traditional banking, must be as exciting as it is frightening.

“But as we have seen in many other sectors disruption makes room for efficiency and progress.”

He continued: “Second, 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.”