CENTRAL BANK OF NIGERIA: Cryptocurrecy Cannot Be Stopped

CENTRAL BANK OF NIGERIA

Some weeks back the central bank of Nigeria(CBN) was asked to seriously look into the Cryptocurrency market.

Based on seriously research and consideration, the CBN has commenced arrangement to introduce a digital currency with the intention of tapping into the cryptocurrency market. This was disclosed by the Deputy Director Payments system policy and oversight (Musa Jimoh).

The CBN management has said that the apex bank cannot quench the wave around cryptocurrency, currently, four departments have been created to work on integrating cryptos into the Nigerian market.

The CBN has always been sceptical about introducing cryptocurrency into the Nigerian financial system, though this was necessary because they had to carry out a qualitative assessment of its transaction methodology. One of the major factors which have to lead to a possible consideration of adopting cryptocurrency is the Bitcoin, it is no longer news that a bitcoin is decentralized and provides an opportunity for personal wealth that is beyond confiscation or restriction. The bitcoin provides an encryption technique which is used to regulate the generation of units and the verification of fund transfers.

The president of information security society of Nigeria (ISSAN), Dr David Isiawe said that the reality before us(Nigerians) is that the distributed ledger technology(DLT) blockchain and cryptocurrency are facts that we must face, whether we like it or not. It is quite clear that the Nigerian financial system is still battling with e-commerce and various electronic payment system, but the fact is that technology actually waits for no one.

In a conference termed “learning to glow with the flow”, The ISSAN president also asked Nigerians to be ready to face the impact of this tremendous change that is about to be unveiled in the society, he encouraged Nigerians to be proactive and not reactive. He warned investors who invest in cryptos to be cautious of the risk as every business tends to have its risk. A new coin known as Corion was also introduced on the day of administering this speech.

The Chief Security officer of Digital Encode, Oluseiye Akindeinde said that cryptocurrency is obviously the future. He made it clear that cryptocurrency cannot be monopolized by any individual, government or company. There is a high level of transparency, the magnitude of transactions can be monitored and hence there is a future possibility that naira will be transferred from one individual to another through the blockchain mechanism.

Considering the security aspect, systems are basically hacked because of its centralization but the blockchain is decentralized which makes it a hack-resistant system. Except an individual is ready to hack the entire internet which is located all over the world then the blockchain cannot be hacked.