Nigerian Central Bank Governor Says Fintechs and Cryptos Change the Way Financial Systems Function – Emerging Markets Bitcoin News

Godwin Emefiele (Nigeria’s central bank governor) recently noted that fintechs have caused banks and other financial institutions to modify their operations. According to Emefiele, this requires the central bank’s monetary policy committee (MPC) to rethink the way it regulates the financial system.

Financial System Regulation Rethought

The governor of the Central Bank of Nigeria (CBN) Godwin Emefiele, reportedly said the MPC, which was set to meet on July 18 and 19, must chart a new path that changes the direction of Nigeria’s monetary policy.

Speaking at a so-called MPC retreat, Emefiele said new technologies and innovations were playing an important role in the development of Nigeria therefore the MPC’s decisions going forward must seek to enhance the contributions of these technologies.

Further, in his remarks published by Daily Nigerian, Emefiele — a bitcoin critic — argued that fintechs and cryptos have changed the way the financial system functions and this calls for a rethink. He added:

Both domestically as well internationally, the function of financial and banking has been altered by the development of fintechs, cryptocurrency, digital payments and artificial intelligence. It is urgent that we rethink the financial system regulation, supervision, and implementation of monetary policies.

While new technology and innovation are frequently associated with uncertainties and risks, Emefiele insists that they also offer many benefits, including better access to financial services and poverty reduction.

Stay Relevant In A Changing World

The Daily Nigerian reports that the CBN Governor has urged MPC members to become familiar with the monetary policies tools and goals relevant for a digital world.

“In order to ensure the relevance of monetary policy and the role of monetary authorities in the new digital world, MPC members must embrace themselves with [an] advanced level understanding of the interplay of digitalization with monetary policy objectives, targets and tools,” Emefiele reportedly said.

Emefiele spoke out about the MPC Retreat, saying that it was an important occasion because it provides the central bank with an opportunity to review its performance during the previous three to four year.

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Terence Zimwara

Terence Zimwara was a Zimbabwe journalist, author and writer who won the award. His writings have covered the economic problems of several African countries and how digital currency can offer an escape route.