Prof James Chinedu Ihemeje, the first professor of Cryptocurrency Finance at Michael Okpara University of Agriculture, Umudike, has urged the adoption of cryptocurrency in government transactions. He believes this will enhance public trust and drive mainstream acceptance of digital currencies in Nigeria’s financial system. He charged the Central Bank of Nigeria and the Securities and Exchange Commission to develop a practical regulatory framework that would enable them to function effectively in the country.
Prof Ihemeje advised while delivering the 61st inaugural lecture of the university titled “Cryptocurrency Investment in Nigeria: Stabilising future value of money for Sustainable Development”. He explained that cryptocurrency is not the same thing as Ponzi schemes, as it was being misconstrued by some critics. He added that Nigerians should be vigilant to avoid falling into online scams.
The inaugural lecturer also dismissed insinuations that cryptocurrency would replace the use of paper money and lead to job losses in the Central Bank and other financial institutions, saying both could coexist. He said, “There is palpable fear at the Central Bank of Nigeria about the cryptocurrency system of transactions because of the implications it may pose to its officials, which can result in job loss or a reduction in their functions.
“There was no need for such fear, as cryptocurrency can still exist side-by-side with paper money, as it is done in the United States of America and other developed economies. It can be used to stabilise the Nigerian economy.
“The CBN and the Security and Exchange Commission should just go into a regulatory framework of cryptocurrency and allow it to flow. No country, government, or central bank controls it. Blockchain computers control it. The CBN is afraid because they may lose part of their jobs. However, the Federal government should adopt it, and they should go into an effective regulatory framework so that if anybody abuses the system, the law will catch the person,” Prof Ihemeje concluded.
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