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Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has called for a pragmatic and collaborative approach to regulating cryptocurrency in Nigeria, acknowledging its rapid growth and the need for a structured framework to manage its impact on the financial system.
Speaking at the inaugural CBN Governor’s Lecture Series held at the Lagos Business School (LBS) on Friday, Cardoso reflected on the evolution of digital currencies and the regulatory gaps that allowed crypto trading to flourish unchecked.
“About two years ago, we reported the issues with cryptocurrency and Binance. What happened was that suddenly, over a period of time, coin exchange became very difficult to get. As a result, many people turned to cryptocurrency. he said. “
He described how a parallel financial architecture emerged, largely outside the purview of regulators. “In many respects, the regulators left this alone, and people believed that perhaps it didn’t exist, until, of course, certain things happened, and then it became clearer that there was certainly a market there.”
“We believe that we do need to have a clearly defined roadmap on innovation and the process of embracing digital technology.”
“Cardoso noted that Nigeria was ranked among the top global markets for cryptocurrency trading. “I don’t know how true it is, but some of the statistics that came out put Nigeria as number two in terms of cryptocurrency trading. Certainly, the volumes of people were very large.”
Building a Framework for Digital Currency
In response to the growing influence of digital assets, Cardoso said the CBN is working closely with the Securities and Exchange Commission and other regulatory bodies to develop a sustainable framework.
“We’re deep in collaboration to ensure that all the different regulatory authorities can midwife through the process that is sustained with respect to digital currency,” he said.
He emphasized that the process is ongoing and requires careful planning. “It’s a work in progress. It’s not something to wish away,” Cardoso added, urging young Nigerians to engage with the future of finance.
Innovation and Inclusion: A Broader Vision
Beyond cryptocurrency, Cardoso highlighted the CBN’s broader commitment to innovation and digital transformation. “We believe that we do need to have a clearly defined roadmap on innovation and the process of embracing digital technology,” he said.
He revealed that the bank has assembled experts to explore digital currency initiatives, including central bank digital currencies (CBDCs). “We’re doing that, but it’s early times yet. But I do believe that there is certainly a way forward.”
Cardoso also addressed misconceptions about careers in central banking, encouraging young people, especially women, to consider roles in the institution. “Contrary to what you may think, you will find that there are people who work in the central bank who have multidisciplinary skills. They’re not all economists, they’re not all financiers,” he said.
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