Nigerian central bank governor says Fintechs and Cryptos change the way financial systems work – Bitcoin news in emerging markets

Nigerian central bank governor and bitcoin critic Godwin Emefiele recently noted that the rise of fintechs and cryptocurrencies among other technologies has forced banks and financial institutions to change the way they operate. According to Emefiele, this requires the central bank’s Monetary Policy Committee (MPC) to reconsider the way it regulates the financial system.

To think new about the regulation of the financial system

The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, allegedly said that the MPC, which was to meet on 18 and 19 July, must map a new path that changes the direction of Nigeria’s monetary policy.

In a speech at a so-called MPC retreat, Emefiele said that new technologies and innovations play an important role in the development of Nigeria, therefore MPC’s decisions in the future must seek to improve the contributions to these technologies.

Furthermore, in his comments published by the Daily Nigerian, Emefiele – a bitcoin critic – claimed that fintech and crypto have changed the way the financial system works, and this requires a new assessment. He said:

The development of fintech, cryptocurrencies, digital payments, artificial intelligence and machine learning has changed the function of the financial and banking sectors, both globally and domestically. Therefore, the urgent call is for the need to reassess the financial system’s regulation, supervision and implementation of monetary policy.

Although new technologies and innovations are often associated with risk and uncertainty, Emefiele insisted that these also come with several benefits that include better access to financial services, poverty reduction and employment.

Stay relevant in a changing world

Meanwhile, the Daily Nigerian report also cites the CBN governor urging members of the MPC to familiarize themselves with monetary policy tools and goals relevant to a digitalized world.

“To ensure the relevance of monetary policy and the role of monetary authorities in the new digital world, MPC members must embrace themselves with [an] advanced level understanding of the interplay between digitalisation and monetary policy goals, objectives and tools, “said Emefiele.

Regarding the MPC retreat, Emefiele said that this was an important event because it gives the central bank an opportunity to assess performance over the last three to four years.

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Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and author. He has written extensively on the economic problems in some African countries, as well as how digital currencies can give Africans an escape route.