"Crypto currency should be innovatively regulated, not prohibited" — VP Yemi Osinbajo.

 

Nigeria’s Vice President Yemi Osinbajo has reacted to the prohibition of crypto currency transactions by the Central Bank of Nigeria.

The VP while addressing addressing participants at the One-day Special Summit on the Economy by Bank Company Executives Officers in conjunction with Vanguard held at Eko Hotel, Lagos on Friday, called for strict regulation of crypto currency in place of a prohibition.

 

His words; "Crypto currency should be innovatively regulated, not prohibited; we must act with knowledge not fear."

Osinbajo said the disruption caused by cryptocurrencies will challenge traditional banking and also give room for efficiency and progress.

 

“Clearly, the future of money and finance especially traditional banking must be exciting as it is frightening but as we’ve seen in many other sectors disruption makes room for efficiency and progress,” he said.

 

“I fully appreciate the position of the CBN, the Securities and Exchange Commission (SEC) and some of the anti-corruption agencies on some of the abuses of cryptocurrencies and their well-articulated concerns.

 

 “I believe their position should be the subject of further reflection. There is 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 these serious concerns without necessarily killing the goose that might lay the golden eggs.”

 

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

The Central Bank of Nigeria recently directed banks and other financial institution to close accounts of persons or entities involved in cryptocurrency transactions.

 

The CBN argues that cryptocurrencies pose the risk of loss of investments, money laundering, terrorism financing, illicit fund flows and other criminal activities.