Vice President Yemi Osinbajo says it has become urgent for central banks around the world to adopt blockchain technology.
Osinbajo made this submission in his keynote address at the third edition of the Nigeria Digital Economy Summit (NDES) on Monday in Abuja.
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The theme of the summit is, “Web 3.0, Blockchain and DeFi: Impact of Africa’s Digital Economy.”
Osinbajo cautioned that blockchain technology — which allows digital information and transactional records to be securely stored and distributed – might disrupt central banking globally if it was not absorbed into the system.
He said it had become necessary for Nigeria to further broaden the scope of banking licences in order to accommodate more players in the financial mediation value chain.
“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.
“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.’’
He said that from a policy perspective in Nigeria, there might be another expansion of the range of banking licenses available to enable more players in the financial mediation value chain.
According to Osinbajo, clear rules must be set to support crypto markets and trading in other digital assets.
He said it was evident that the same old banking licences that were in use were no longer tenable. (NAN)
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