Electronic Payment Practitioners Association of Nigeria (E-PPAN) has called on the Central Bank of Nigeria (CBN) to provide a regulatory framework that will guide the blockchain and cryptocurrency space in Nigeria.
According to the association, lack of a legal framework for financial services leveraging the blockchain technology is forcing investment out of the country to other African countries and Europe.
In a conference organised by E-PPAN in Lagos on the 9 November 2018, Fintech experts present at the event lament at the CBN inability to regulate the industry.
Investments in blockchain technology-based financial services such as cryptocurrency are today going to Rwanda and Malta which has provided a regulatory framework that guides operators of the technology.
Founder, Gboza Gboza Technology Ltd Ade Atobatele stress the need why the CBN should come up with a guideline.
We have a license with CBN, but our blockchain technology base service is been operated in Rwanda which has offered us the license. More so, huge investment is going into Malta in the area of cryptocurrency that runs on blockchain technology
CBN To Regulate Blockchain And Cryptocurrency Industry
In response to the CBN inability to regulate the blockchain space, Deputy Director, Banking and Payments System Policy, Central Bank of Nigeria Musa Jimoh also present at the event, said they are aware of the space and the Central Bank of Nigeria will come up with a legal framework soon.
We are restructuring the licensing regime to accommodate risks that fintech present in the system and how they can work with banks to mitigate those risks. Fintech is coming up with products and technology that is unmatched with banks, this also needs to be addressed. – according to reports by Nigeria’s Guardian newspaper
CEO Vault Bridge Michael Kiberu further urged to CBN to take follow the footsteps of countries like Switzerland, Malta, Japan, Kenya, Uganda whose adoption of the blockchain technology is already having a great impact to the respective countries citing that the government will benefit from such move.
“The government also stands to gain a lot from adopting the new frontiers in technology development like blockchain and Cryptocurrency. Even the few individuals who claimed to have some knowledge about blockchain end up tagging blockchain with Cryptocurrency as the only solution that blockchain can deliver. The blockchain is a disruptive and innovative technology built on trust, an answer to an immutable record, storage, transmission of any form of data or transaction.” he concludes.