It is no longer news that the central bank of Nigeria has banned financial institutions in the country from providing their services for crypto related transactions again, but in what appears to be a ray of light and hope for the burgeoning crypto sector, the Vice President of the country, Professor Yemi Osinbajo recently made a presentation which seems to be in support of blockchain and cryptocurrencies. In his presentation, the law professor stated that there was a need for the government to prepare for the inevitable shift from the traditional financial system towards blockchain and digital currencies.
Cryptocurrencies in the coming years will challenge traditional banking, including reserve banking, in ways that we cannot yet imagine, so we need to be prepared for that seismic shift. pic.twitter.com/tbIR8eah2s
— Prof Yemi Osinbajo (@ProfOsinbajo) February 26, 2021
According to him, the crypto industry is broad enough and with decentralized finance (DeFi) the creation of smart financial instruments which would replace the old are already in place. He, however, highlighted the need to manage this new development carefully so that the country, Nigeria, can enjoy from the benefits attached to the space while also preparing to prevent any side effects that might come with the adoption of such a volatile industry.
The position of Nigeria’s Vice President on blockchain and crypto assets contradicts that of the Central Bank Governor, Godwin Emefiele, who classified cryptocurrencies as illegal while facing lawmakers of the country. However, the Securities and Exchange Commission (SEC) and the apex bank have agreed to work together towards regulating the crypto space in the country.