Cryptocurrencies: Regulate it, not ban – Osinbajo advises CBN

Vice President, Yemi Osinbajo, has advised the Central Bank of Nigeria to regulate activities involving cryptocurrencies rather than banning it.

Osinbajo made this call while speaking a one-day economic summit organized by the CBN, the Banker’s Committee, and the Vanguard Newspaper, themed “Bankers’ Initiative for Economic Growth” in Lagos on Friday.

According to the VP, the monetary authorities should rather provide a “robust regulatory regime” that will address the concerns about cryptocurrencies.

“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,” he said.

“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.

“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 these serious concerns without necessarily killing the goose that might lay the golden eggs”, the vice president said.

Osinbajo further expressed optimism that cryptocurrencies “will challenge traditional banking, including reserve banking, in ways that we cannot yet imagine” in the coming years.