Members of the House of Representatives on Wednesday called on Central Bank of Nigeria (CBN( and Nigerian Deposit Insurance Commission (NDIC) to put in place a legal framework for the regulation of the blockchain technology .
The resolution was passed sequel to the adoption of a motion titled: “Need to regulate blockchain applications and Internet technology” sponsored by Solomon Adaelu, who underscored the novelty of the blockchain technology and its capability to facilitate payments for financial services industry.
“Blockchain as a digital and decentralization ledger technology that records all transactions without the need for financial intermediary bank is new to humanity and can be a core payment facilitator for financial services industry.
“A blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography as “an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way,” the lawmaker noted.
According to him, it was first invented in 2008 by Satoshi Nakamoto for use in the cryptocurrency bitcoin, blockchain is said to have solved the problem of double-spending in digital currency transaction without a trusted authority or central server.
Adaelu recalled that the world economic leaders at the G20 Finance Ministers’ meeting held in 2017 had set July 2018 as deadline for a unified cryptocurrency regulation.
He added: “Countries such as the USA, the UK, Russia, Venezuela and Kenya have provided framework for the regulations of this emerging technology.”
Other lawmakers who spoke in favour of the motion, who acknowledged the warning issued by the apex bank and NDIC to Nigerians not to trade on cryptocurrency given the complexity and uncertainty surrounding it, however stressed the need for protective measure.
KEHINDE AKINTOLA, Abuja
