Blockchain technology will disrupt traditional banking in the coming years, Nigeria’s Vice President believes. Speaking at a recent event, he rebuked the recent ban on digital currencies, advocating for Nigerian authorities to regulate the industry. The Vice President noted during a recent Bankers Committee meeting. Yemi Osinbajo addressed several issues facing the Nigerian economy, calling for the financial services industry to adopt new digital approaches to stay competitive. The Vice President said that blockchain technology in general, and cryptocurrencies in particular, will in the coming years challenge traditional banking in ways that yet can’t be imagined.
#Osinbajo advises #CBN to put in place a thoughtful & knowledge based regulation, cautioned on the need to ensure that we are in a position to prevent any of the adverse side effects or even possible criminal acts that may arise as a consequence of adopting blockchain technology.
— Central Bank of Nigeria (@cenbank) February 26, 2021
“We need to be prepared for that seismic shift.”
Yemi Osinbajo further stated,” blockchain and crypto will challenge traditional banking, including reserve banking, in ways we can’t yet imagine. We need to be prepared for that seismic shift.” The Vice President pointed out that this shift may come sooner rather than later. Already, remittance services are being challenged by digital currency-based services that are faster and more cost-efficient. SWIFT has been one of the most adversely affected, with its five-day delay and high fees leading to the exodus to blockchain-based services.
Nigerian central bank defended the crypto ban.
As reported earlier, the Central Bank of Nigeria has defended the recent ban on digital currencies, saying it was in the best interest of the public. Speaking during a recent Senate hearing, the central bank’s governor Godwin Emefiele further claimed that digital currencies are not legitimate money. CBN issued a circular two weeks ago prohibiting all banks from processing digital currency-related transactions. The central bank had ordered banks to identify individuals and firms dealing in digital currencies and shut down their accounts. However, the Senate called on the CBN governor to brief it on the decision as several senators felt the ban was too harsh and hoped the central bank would reconsider.