Don’t Ban cryptocurrencies, Osinbajo advises CBN

The Vice President of Nigeria, Prof Yemi Osinbajo has advised the Central Bank of Nigeria that cryptocurrencies should be regulated and not prohibited.

You would recall that, the CBN had only recently ordered all banking, non-banking institutions, and other financial institutions against enabling cryptocurrency tradings.

The CBN had ordered that all these institutions should close the accounts of customers with cryptocurrency transactions immediately.

The apex bank also ordered that any form of violation of the directive will attract severe regulatory sanctions.

However, the Vice President, while speaking at the Bankers Committee Vanguard in Lagos, said that fear should not be applied in terms of cryptocurrencies.

He advised the monetary authorities to provide a “robust regulatory regime” that will address the concerns about 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.”

He said, “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.”

Osinbajo further said in the coming years, crypto currency “will challenge traditional banking, including reserve banking, in ways that we cannot yet imagine.”

The CBN Governor, Godwin Emefiele, has earlier said the decision, was taken in the best interest of Nigerians.