Francis Ogbuka, Vice President of Sales and Development at Zone, has said that regulatory participation is crucial to the country’s adoption of blockchain.
He disclosed this during a panel session at the recent BusinessDay Blockchain conference. He said, “One thing that became very clear to us is that regulatory participation is key to the adoption of blockchain.
“Financial services are underpinned by trust. When you provide a service, you want to trust that the person can pay you. In engaging with regulated financial players to drive adoption or scale, it became clear that we could not execute this without a handshake with the Central Bank.”
Ogbuka pointed to the recent collapses in the unregulated crypto space, such as FTX and Luna, as evidence of the need for regulatory oversight. He stressed that regulation plays a critical role in fostering trust, preventing future crises, and ensuring the long-term viability of blockchain adoption, both for financial institutions and individual users.
Obinna Iwuno, President of the Stakeholders in Blockchain Association of Nigeria (SIBAN), corroborated this and argued that regulators must be well-informed to avoid creating stifling rules that could hinder innovation.
“If the regulator is not educated about what they are regulating, what will they come up with? We may end up with regulations that strangle innovation, which is not in the industry’s best interest,” Iwuno cautioned.
Iwuno advocated for a holistic approach to education that encompasses both the industry and policymakers. “When you educate the industry, you get regulations that allow it to grow,” he added. He stressed that informed policymakers are better equipped to craft action plans or legislation that will support, rather than stifle, blockchain innovation.
He added that the government should have a fund for blockchain education to improve the adoption and understanding of the space.
Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC), also noted at the conference that the SEC has a duty to protect investors and foster market development. This is as he lauded the transformative potential of blockchain technology in driving the country’s innovation and economic growth.
Agama noted that blockchain technology can be harnessed to tackle some of the country’s most pressing challenges, including financial exclusion, lack of transparency, and inefficiencies in the public and private sectors.
“Blockchain technology can create transformative change in Nigeria and across African economies and societies,” he said. “With over 60 percent of Africans still unbanked, blockchain-based financial services offer a gateway to financial inclusion, providing access to financial services without traditional banking infrastructure.”
According to Agama, blockchain is no longer a mere buzzword but an essential component of the global financial and economic ecosystem.
He said, “Its decentralised, transparent, and secure nature has already led to innovations across various sectors, including finance, supply chains, healthcare, and governance. In Africa, where financial exclusion and inefficiencies are widespread, blockchain presents a unique opportunity to drive economic and social change.”
According to Agama, blockchain technology is critical for democratising financial assets. He explained how blockchain could make micro-lending, remittances, and other financial services more accessible and affordable, especially for people currently excluded from the formal financial system.
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