Nigeria’s Vice President Predicts Cryptocurrencies Challenging Traditional Banking
Africa’s most populous nation is one of many that quickly embraced cryptocurrencies when they came into the limelight. Despite the citizenry’s interest and demand for cryptos, the central bank, the Central Bank of Nigeria, kicked against cryptocurrency trading due to the investment class’s risks. Some years back, the regulator had voiced its displeasure regarding the asset, and one of the body’s top officials said that cryptos aid terrorism financing and money laundering.
The country official stopped cryptocurrency trading by restricting financial institutions from dealing with exchanges and other crypto-related bodies. The restriction seems not to affect peer-to-peer trading as statistics show a soar in that aspect. The nation continues to record high trading volumes amongst its peers in Africa, and the ban has not discouraged natives from holding digital assets.
Vice President calls for crypto regulation and not ban
When the Central Bank of Nigeria banned crypto trading some weeks back, the locals shared their displeasure on social media, while crypto-related businesses stopped Nigerians from depositing or withdrawing.
The restriction has not prevented the people from soaring in traditional peer-to-peer trading. There are some huge signals that the regulator would look into the ban as the country’s Senate calls for the regulations for the sector and not a complete ban.
Some senators believe that cryptos are the future, and the nation’s vice president, Yemi Osinbajo, shares similar beliefs. Osinbajo had previously advised the regulator to regulate and not ban the industry but has now predicted what he sees for the future.
The lawyer said he believes that cryptocurrencies would challenge traditional banking, including reserve banking. He predicts that a change beyond their imagination would happen and that the nation has to prepare for that shift.
Osinbanjo shared his belief in the CBN Committee Economic Summit, which has received a lot of attention from the region’s Twitter space. The vice president is finally voicing his opinion several weeks since the ban, showing a possibility of the ban removal.
Osinbajo calls for initiatives to check Blockchain’s adverse effects
Nigeria’s vice president applauded the regulator’s activeness regarding the measures because he believes people must use blockchain technologies strategically.
Osinbanjo hopes the country would find agencies that would allow the citizens to enjoy the advantages of Blockchain while putting its negative effect in check. Interestingly, Godwin Emefiele, CBN’s governor, said cryptocurrencies were from the dark world and created out of thin air, which he believes justified the ban.
Sources claim that the natives ask the vice president to use his executive office to assist the crypto cause in the nation. The country might soon take steps to remove the ban while ensuring that the sector is duly regulated. Many countries are also working towards regulating the booming sector because they believe that it promotes terrorism financing and other unwanted vices.
Countries like America already proposed some regulations for the sector, which would be enforced soon as investigations show that the Capitol riot organizers were funded through Bitcoin. The US Senate had a recent discussion on cryptocurrency, showing that the country would likely put measures in place.
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