Chairman, BlockChain Industry Co-ordinating Committee of Nigeria, Mr. Chimezie Chuta, has urged the Federal Government to adopt a risk-based approach to crypto-currency and bring the actors and businesses involved in ecosystem to a roundtable for a workable framework that will enable its operations.
Chuta, who stated this at a two-day conference in Lagos, tagged, “Blockchain, Crypto-Arts and Future of Money,” said the regulatory high-handedness of formulators in crypto currency business in Nigeria was not healthy for innovative growth of the technology industry.
He said the industry had a potential to attract Foreign Direct Investment (FDI) and galvanise local technology communities for start-up to build new products and services that will help reposition the country’s economic fortune.
“In the last few weeks, we have seen series of regulatory high-handedness from some agencies of government. It is only Security and Exchange Commission (SEC) that has constantly engaged and developed a more friendly regulatory regime that could actually help the ecosystem, while other agencies are busy banning the operations without engaging stakeholders on how the technology can help grow the economy,” he said.
Chuta noted that the activities of crypto-currency in Nigeria is not in anyway the reason the country is experiencing free fall of Naira, adding that the failed economic policies of the Central Bank of Nigeria (CBN) and its monetary system are responsible for the depletion of naira and poor economy the country is experiencing.
“Naira has been on the free fall for more than 20 years and during these years, crypto-currency has not been in existence then. So, for anyone to now claim that the activities of the operators are responsible for the poor economy, the person is not being fair at all,” he stated.
He said that the argument that people use crypto–currency for illicit acts was not enough reason to ban its operations or shut it down while the Central Bank of Nigeria (CBN) has now come up with modalities of introducing or issuing a digital currency, which is also a type of crypto-currency.
“Just like every other business and profession, there are criminal elements that want to take advantage of every opportunity but it is not enough for government to throw away the baby with the bath water,” he further said.
He said the reason why prices of crypto-currency keep fluctuating was because the market is exposed to global communities of users that operate virtually in a market that has no closing time.