Blockchain: Central Banking Ends Soon, Nigerian VP Warns Emefiele-led CBN

The Vice President, Yemi Osinbajo, says the central banking systems is in its last days due to blockchain technology. He said Central Bank of Nigeria (CBN) must adopt it to survive.

Osinbajo has always made a case for digital currency and blockchain, which put him in the opposite direction of the policies made by Godwin Emefiele-led central bank. 

When the Nigerian central bank banned cryptocurrency in February 2021, the vice president had spoken against it, stating that the CBN should have adopted it rather than drop an embargo on trading of the digital currencies. 

In a new development on Monday, during the third edition of the Nigeria Digital Economy Summit (NDES), tagged ‘Web 3.0, Crypto and DeFi: Impact of Africa’s Digital Economy’, Osinbajo defended blockchain. 

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He warned that the future of central banking system is at risk if government across the world continue to resist the adoption of blockchain, which helps to secure information and transactional records digitally and distributes them. 

Osinbajo projected that blockchain could disrupt the banking system, advising that, “From a policy perspective here in Nigeria, we may need to again expand the range of banking licenses available to enable more players in the financial mediation value chain.” 

The VP further stated that, “Even central banks all over the world will have to rethink their roles since blockchain will challenge the centralisation of monetary authority with its clear imperfections. 

“Who knows? We might actually be in the last days of the central banking system as we know it. 

“It is either the central banking systems all over the world will adopt blockchain technology, or they will be taken over by blockchain technology. 

“We are certainly, in my own view, in the last of the central banking system; which means the space is open for all sorts of innovation in the central banking space.”