Godwin Emefiele, the governor of the Nigerian central bank and an outspoken critic of bitcoin, recently said that the emergence of fintech and cryptocurrencies, among other technologies, has caused banks and other financial institutions to alter their business practices. Emefiele argues that this warrants a reevaluation of the financial system’s regulation by the monetary policy committee (MPC) of the central bank.
Speaking at an MPC conference, Emefiele stated that innovations and new technologies were crucial to Nigeria’s development and that the MPC’s future decisions needed to focus on maximizing their contributions.
And according to comments made by Emefiele, a critic of bitcoin— fintech and cryptocurrencies have affected how the financial system works, prompting a rethink.
According to him, both nationally and worldwide, the development of fintech, cryptocurrencies, digital payments, artificial intelligence, and machine learning has altered how the financial and banking sectors operate. Therefore, there is an urgent need to reconsider how to regulate, monitor, and carry out monetary policy.
Emefiele insisted that although breakthroughs and technologies frequently come with dangers and uncertainties, they also have a number of advantages, including improved access to financial services, a reduction in poverty, and the creation of jobs.
The CBN governor also encouraged the MPC members to become familiar with monetary policy tools and goals that are appropriate for a digital age.
“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 referred to the MPC retreat as a significant occasion because it allows the central bank a chance to evaluate its performance over the previous three to four years.