Nigeria’s Vice President, Prof. Yemi Osibanjo has told the Central Bank of Nigeria that cryptocurrencies has to be regulated and not prohibited.
This request is coming after the CBN had, ordered all deposit money banks, non-banking institutions, and other financial institutions against allowing cryptocurrency trading few weeks ago.
The apex bank gave a direct order asking financial institutions to close the accounts of customers with cryptocurrency transactions immediately, saying that whoever violate the directive will attract severe regulatory sanctions.
According to the CBN Governor, Godwin Emefiele, who spoke on the decision again, said it was taken in the best interest of Nigerians.
He made this statement when he was briefing a joint Senate Committee on Banking, Insurance and Other Financial Institutions; ICT and Cybercrime; and Capital Market.
However, VP Osinbajo, who was a guest speaker on Friday at the Bankers Committee Vanguard in Lagos, said that fear shouldn’t be an issue when it comes to cryptocurrencies.
Punch reported that, the Vice President appealed to the monetary authorities to make room for a “robust regulatory regime” that will take care of the concerns of cryptocurrencies.
He said, “The point I’m making is that some of the exciting developments we see call for prudent and care in adopting them, and this has been very well articulated by our regulatory authorities,”
“But we must act with knowledge and not with fear. We must ensure that we are in a position to benefit and prevent any of the adverse side effects or any of the possible criminal acts that may arise as the consequence of our adopting or taking any of these options.
“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’s a role for regulation here, and it is in the place of our monetary authorities and SEC to provide a robust regulatory regime that addresses this serious concerns without necessarily killing the goose that might lay the golden eggs.”
Expressing positivity towards cryptocurrencies, Osinbajo said in the coming years, “it will challenge traditional banking, including reserve banking, in ways that we cannot yet imagine.”