Time for Nigerian Banks To Ask the Central Bank of Nigeria (CBN) To Change Position?

Time for Nigerian Banks To Ask the Central Bank of Nigeria (CBN) To Change Position?

Hello Central Bank of Nigeria, Goldman Sachs is going cryptocurrency. No matter how we see it, crypto is evolving as the payment layer of the internet. Nigeria must not be disconnected from it. I think it is also time for Nigerian banks to send a memo to the apex bank that its policy on this may not be helping the sector. If America’s investment banking institutions are adopting this, why should Nigerian banks be frozen on it? We simply need pragmatic regulations, and not prohibitions on these emerging technologies.

  • The bank aims to begin offering investments in the emerging asset class in the second quarter, according to Mary Rich, who was recently named global head of digital assets for Goldman’s private wealth management division.
  • Goldman is looking at ultimately offering a “full spectrum” of investments in bitcoin and digital assets, “whether that’s through the physical bitcoin, derivatives or traditional investment vehicles,” she said.
  • Some Goldman clients “feel like we’re sitting at the dawn of a new Internet in some ways and are looking for ways to participate in this space,” Rich said.

In February 2021, Nigeria suspended the integration of cryptocurrency exchanges within the Nigeria financial systems. My position mirrors that of the Vice President of Nigeria, Prof Yemi Osinbajo, who wrote that Nigeria “needs to act with knowledge not fear” in addressing the concerns emanating from blockchain technology. He then  recommended regulation instead of prohibition, noting that blockchain technology has come to stay, and Nigeria will be left behind if it doesn’t follow up despite any risk associated with a new asset class or payment tool.

Nigeria – we are unique. Yes, the Central Bank of Nigeria (CBN) has released a regulatory hammer: all cryptocurrency entities are banned in the Nigerian banking system. So, exchanges, participants, brokers, dealers, crypto-fintechs, etc are banned. Sure, things will get crazier now as these guys will move to the black market as I am sure no CBN rule can stop young people and their cryptocurrencies.

If Nigeria decides that banning foreign coins is the future, then, it needs to consider creating a digital currency which can be easily plugged and connected to the world. But doing nothing should not be acceptable, and the banks could make that point to the apex bank.

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One thought on “Time for Nigerian Banks To Ask the Central Bank of Nigeria (CBN) To Change Position?

  1. Any penalty for making bad calls and doubling down on them? That should be our starting point. Right now, it looks as though the future of Nigeria’s economy is in the hands few guys at the CBN or Aso Rock. The CBN governor openly and arrogantly described cryptos as something ‘out of thin air’, it’s over a month, yet the National Economic Council didn’t call for emergency session, at least to ascertain if the man has lost his sense. Everyone carried on as normal, perhaps members of NEC are as clueless as regular idiots we have in abundance.

    The VP keeps making speeches, yet no one is reading the Riot Act for those saddled with the responsibility of managing the economy. So, if at the end it was a wrong call and has gone beyond repair, what happens? This docile and numbing disposition is one aspect I find more nauseating and disappointing. We are waiting for a certain Emefiele or Buhari to wake up and reverse their gaffe, and if he refuses to wake up? Hopelessness and helplessness everywhere!

    We are pitifully waiting for one man or group of zero talent gang, to issue a statement, telling the brilliant and knowledgeable ones the way forward.

    I understand that an average Nigerian has a short memory span, I don’t forget easily.

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