Crypto has changed the function of the global financial sector
The Central Bank of Nigeria (CBN) has acknowledged that the emergence of cryptocurrencies has introduced innovations in the financial sector, an aspect that has forced most institutions to change their mode of operation.
CBN Governor Godwin Emefiele noted that despite the existing risks associated with cryptocurrencies and fintech, they come with benefits such as financial inclusion that drives growth and lowers poverty levels, Daily Nigeria reported July 15th.
In this line, the Governor noted that financial institutions need to reconsider their approach to regulating the emerging sector.
“The development of FinTechs, cryptocurrencies, digital payments, artificial intelligence and machine learning has changed the functioning of the financial and banking sectors, both globally and domestically. he.
Nigeria’s focus on crypto regulation
According to Emefiele, based on the benefits of the crypto sector, the country is tasked with finding a new approach to adapting to monetary policy. The governor confirmed that the Bank’s Monetary Policy Committee (MPC) would adopt a new policy approach to improve the country’s monetary policy framework and provide a new direction.
Furthermore, Emefiele challenged MPC members to become familiar with the digitized monetary policy goals, objectives and tools.
“To ensure the relevance of monetary policy and the role of monetary authorities in the new digital world, MPC members must embrace themselves with advanced level understanding of the interplay between digitization and monetary policy goals, objectives and tools,” he added.
Rising crypto investors
In general, Nigerian authorities have been forced to take a closer look at the crypto sector, given that a majority of citizens own various assets.
As reported by Finbold, the crypto exchange KuCoin revealed that around 33.4 million Nigerians, representing 35% of the country’s population between the ages of 18 and 60, were either current owners of crypto or have participated in crypto trading since April.
With the local currency falling, most Nigerians have turned to cryptocurrencies as a store of value and means to pay payments.
Following the growth of cryptocurrencies, CBN has also increased its actions against unregulated crypto service providers. For example, at one point the bank imposed fines totaling $ 800 million ($ 1.9 million) on four banks for allegedly facilitating cryptocurrency transactions in 2021.
