Cryptocurrencies Change How Financial Institutions Work, Says Nigerian Central Bank Governor

The Central Bank of Nigeria recognizes the sophistication of cryptocurrencies. (Bitcoinist)

JAKARTA – The massive adoption of cryptocurrencies among the global community has become a challenge for a number of financial institutions such as central banks. Even the Central Bank of Nigeria (CBN) admits that cryptocurrencies have changed monetary policy despite the decline in the crypto market.

This was conveyed by the Governor of the Central Bank of Nigeria, Godwin Emefiele. He added that new technologies and innovations underlying cryptocurrencies have an important role to play in the domestic financial system. Therefore, the government seeks to increase the contribution of these new technologies.

According to a local media report, Daily Nigerian, Emefiele, a bitcoin critic, thinks that fintech and cryptocurrencies have changed the way the monetary system works and this needs to be reviewed.

“The evolution of fintech, cryptocurrencies, digital payments, artificial intelligence and machine learning, has changed the functioning of the financial and banking sectors, both globally and domestically. Therefore, there is an urgent need for a review of financial system regulation, monitoring and implementation of monetary policy," said CBN Governor Godwin Emefiele, quoted from Bitcoin.com News.

Emefiele, on the other hand, recognizes that cryptocurrencies are high risk and full of uncertainty. However, he insists that cryptocurrencies provide a number of benefits which include better access to financial services, reducing poverty and creating more jobs.

While new technologies and innovations are often associated with risk and uncertainty, Emefiele insists that this also comes with several benefits which include better access to financial services, reduction of poverty, and contributing to wider job creation.

Furthermore, Emefiele urged the Monetary Policy Committee of Nigeria (MPC) to familiarize themselves with and study a number of important elements of the digital world for domestic monetary interests.