BREAKING: Restore and regulate cryptocurrency, Osinbajo orders

Vice President Yemi Osinbajo SAN has requested the robust regulation of cryptocurrency in Nigeria, as against the banning of the digital currency.

Speaking at the Bankers Committee, on Friday, Professor Osinbajo who talked about a variety of issues, addressed the cryptocurrency matter.

Osinbajo said, “On the very topical issue of block chain technology, digital assets, and cryptocurrencies let me say two things.

“First is that there is no question that block chain 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.

“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. Clearly the future of money and finance, especially in 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 clarified that, “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.”