Blockchain technology will disrupt traditional banking in the coming years, believes Nigeria’s vice president. Speaking at a recent incident, he reprimanded the latest ban digital currencies, advocates that Nigerian authorities should regulate the industry.
Yemi Osinbajo var speak during a recent meeting of the Bankers Committee. He addressed several issues facing the Nigerian economy and called on the financial sector to use new digital strategies to remain competitive.
On the “very topical issue of blockchain technology,” the vice president said, “there is no doubt that blockchain technology in general and cryptocurrencies in particular will challenge traditional banking, including reserve banking, in the coming years in the way we “Can’t imagine anyway. We have to be prepared for the seismic shift.”
This shift may come sooner rather than later, he pointed out. Challenge services are already being challenged by digital currency-based services that are faster and more cost-effective. SWIFT has been one of the most negatively affected, with a five-day delay and high fees leading to the relocation to blockchain-based services.
In Nigeria, this shift has already begun, with Bitcoin SV wallet Centbee is one of the leaders in blockchain-based transfer services. The South African company Minit Money Service allows Nigerians to send money in seconds on the Bitcoin SV blockchain. With Bitcoin SV taking less than $ 0.001 per transaction, the service is it the cheapest on the market.
“Blockchain technology will provide much cheaper alternatives to the type of fees paid today for cross-border bank transfers,” Osinbajo said.
Nigeria’s VP also dug into recently banned by the Central Bank of Nigeria which prohibited banks from processing digital currency transactions. CBN has acted to limit any misuse of digital currencies, he stated. But a complete ban is too extreme, he believes.
“There is a role for regulation here. It is up to our monetary authorities and the SEC to provide a regulatory system that addresses these serious concerns without necessarily killing the goose that can lay the golden egg. It should be thoughtful and knowledge-based rules, not prohibitions. […] We must act with knowledge and not with fear. ”
CBN acknowledged VP’s advice on regulating digital currencies.
#Osinbajo advises #CBN to introduce a thoughtful and knowledge-based regulation, warning of the need to ensure that we are able to prevent some of the negative side effects or even any criminal acts that may arise as a result of our adoption of blockchain technology.
– Centralbank of Nigeria (@cenbank) February 26, 2021
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