| -Nigeria needs to regulate crypto, not ban says VP. -Osinbajo said crypto in the coming years will challenge financial banking. -The utilization of bitcoin has boomed in Nigeria in recent years. |
Nigeria’s Vice President (VP) Yemi Osinbajo said the country’s central bank and securities regulator has to find ways to regulate cryptocurrencies instead of prohibiting their use. In addition, Osinbajo also urges them to come up with a regime that helps to support growth and innovation.
Nigeria Needs to Regulate Crypto, Not Ban
On Friday, Osinbajo delivered a speech at an economic summit. In which Osinbajo spoke positively of cryptocurrency and blockchain technology.
Moreover, this month the central bank barred banks and financial institutions from dealing in or facilitating transactions in crypto like bitcoin. And also warning that banks that fail to act could face severe regulatory actions.
Meanwhile, the Securities and Exchange Commission (SEC) sought to regulate crypto investments on the grounds that they qualify as securities transactions. More so, both the regulators explained that they identified some risks within the crypto sector.
Even more, the central bank has argued that crypto, which is unregulated and not legal tender, is hard for the user.
Osinbajo said,
“I fully appreciate the position of the central bank, the Securities and Exchange Commission and … the possible abuses of cryptocurrencies.”
However, Osinbajo added that there is a role for regulation. More so, it is the place of our monetary authorities and SEC to provide a regulation that addresses these serious issues. Moreover, Central bank governor Godwin Emefiele addressed top bankers at an online meeting.
Nigeria VP Sees Potential of Crypto & Blockchain
Furthermore, Osinbajo adds that crypto in the coming years will challenge financial banking. While including the reserve bank, in ways that are imaginable. However, everyone needs to be prepared for that seismic shift.
The utilization of bitcoin, the original and biggest cryptocurrency, has boomed in Nigeria in recent years. Especially among small businesses, as the weakening naira currency. Moreover, making it difficult to get the US dollars needed to import goods or services.
Bitcoin has surged over 60% this year, hitting an all-time high of $58,330 this month. This is because mainstream firms like Tesla Inc and Mastercard Inc have made their investments into cryptocurrencies.
According to CoinGecko, the BTC price is $46,885, at the time of writing.
Researcher Crypto Compare said digital assets under management in exchange-traded products increased this month to a record $43.9 billion. Many central banks decide to issue their own digital currencies although Nigeria has not said it is among them.
Furthermore, the International Monetary Fund said that policymakers need to aim to harness the advantage of cryptocurrencies while addressing their risks and legal challenges.
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