CBN, SEC to Develop Sustainable Framework For Crypto Market

The Central Bank of Nigeria (CBN) Olayemi Cardoso said the apex bank is collaborating with the Securities and Exchange Commission (SEC) to develop a sustainable framework for digital currencies in the country.

He spoke on this at the CBN governor’s annual lecture series at the Lagos Business School (LBS) on Friday, October 3.

According to Cardoso, cryptocurrencies, fintech, and blockchain innovation will play a role in shaping the future of currency policy.

He recalled that two years ago, the country was thrust into global crypto prominence as the regulators struggled to manage coin exchange markets, noting that the country ranked among the largest crypto trading hubs worldwide.

“Suddenly, over a period of time, coin exchange became very difficult to protect. Many people, not just youngsters, turned to crypto, and a whole architecture started to evolve.

“In many respects, regulators left it alone, and people believed that perhaps it didn’t exist until certain things happened. It became clearer that there was a need to understand the market better.

“We are deeply in collaboration to ensure that all the different regulatory authorities can midwife the process that is sustainable with respect to digital currency,” Cardoso said.
The apex bank governor noted that CBN is already embracing digitisation and artificial intelligence (AI), digitising all approval processes, and is now committed to running a paperless office.

He urged students aspiring to be future leaders to safeguard their credibility, stay the course despite headwinds, and communicate effectively, especially in complex areas like monetary policy.

“The danger in not communicating it is that only you alone know what you are doing. People need to understand the journey, the challenges, and the hope for the future,” Cardoso said.

He added that consistent policies and reforms have restored confidence in Nigeria’s economy, with global investors showing renewed appetite.

Pinnacle Daily reports that in December 2023, CBN lifted a ban on cryptocurrency transactions in the country.
In February 2021, it had instructed banks and other financial institutions to close accounts of individuals engaged in cryptocurrency transactions.

Lifting the ban at the time, CBN said the current global trends had shown the need for crypto regulation, adding that all banks and other financial institutions were required to comply quickly with the new guidelines.

Credit: The PinnacleNg