NIGERIAN CBN ALREADY FOR CRYPTOCURRENCY?

It appears like, in spite of the recent warning issued by the Securities and Exchange Commission of Nigeria, the apex bank of Nigeria has already set in motion actions to formally approve issuance of cryptocurrency in Nigeria.

According to a letter dated December 20 purportedly signed and issued by Dipo Fatokin, director banking and payments department of the Central Bank ofNigeria with reference no BPS/DIR/GEN/NEF/02/007, the issue now in Nigeria is not about if, but about when cryptocurrency will be given the nod in Nigeria.

The letter refers to blockchain technology which is the platform for cryptocurrencies and reads:

"Blockchain is gradually becoming a pervasive platform in the conduct of modern payments. It has presented itself to the world of payments by giving strong value propositions around security, digitalisation and trust"

"That blockchain will define our payments here in Nigeria is a question of when, rather than if. Therefore, the CBN has decided to take proactive steps through setting up of an industry committee into which you are requested to nominate a knowledgeable personnel from your organisation"

"This committee will be tasked with looking at the following areas which will guide blockchain implementation within the Nigerian payments space:

1) Policies and guidelines that will guide blockchain technology regulation in Nigeria and 

11) Operational framework for instituting a domestic cryptocurrency in Nigeria."

"The committee will be expected to deliver its report to the director, banking and payments system department by February 24, 2017. The financial industry and society at large depend on your commitment and contributions on this committee as it will shape our payments system in the years to come"

On the surface, it is a good step in the right direction by the right authority on payments system in Nigeria. However, given that there are so many dimensions to crptocurrency, setting up a committee not permitted to examine if and thus establish national rational strikes a suspicious chord.

Besides, this is Nigeria where the more you look or hear the less you see of backroom determinants of public policy.

Hence it certainly will be more appropriate for the committee to examine if first BEFORE moving on to when depending on answer to if.
That is, if truly the said letter is a letter issued by the CBN. On that Henates had no reaction from the corporate affairs  before posting this.

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