Osinbajo counsels Central banks on blockchain technology

Vice President Yemi Osinbajo has advised Central Banks around the world to adopt blockchain technology.

Osinbajo made the call while delivering a keynote address at the third edition of the Nigeria Digital Economy Summit (NDES) on Monday in Abuja.

The summit was themed, ‘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 urged the CBN in particular to further broaden the scope of banking licences in order to accommodate more players in the financial mediation value chain.

He said, “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.

READ ALSO: Nigerian govt moves to adopt Blockchain technology for operation efficiency

“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.’’

The Vice President added that clear rules must be set to support crypto markets and trading in other digital assets.

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