ECOWAS Chief Strategist Warns Nigerian Banks Against Ignoring Blockchain Technology

ECOWAS Chief Economic Strategist, Prof Ken Ife, has warned that Nigerian banks ignoring blockchain revolution may be overtaken by the new technology.

Ife said this during a workshop organised by the Nigerian Communications Commission in Abuja.

The Distributed Ledger Technologies (blockchain) has been identified to be a veritable option for security of transactions across various fields which the banking system can tap.

Beyond cryptocurrency, the blockchain exists with real world implementations in enhancing efficiency and data security, according to experts.

Like some central banks, the Central Bank of Nigeria had threatened to sanction Nigerian banks that permit cryptocurrency related transactions in its system.

Ife, who is also a consultant on Policy Advocacy Strategy and communicating CBN policies, strategies, programmes and activities to stakeholders and the public, said banks may face stiff competition if they fail to adopt blockchain technology.

He also faulted banks for not adequately promoting the CBN e-Naira launched last year which is built on blockchain.

He said, “This same technology blockchain, I was like saying to them (banks) there are contentions about regulatory control over blockchain over the financial services sector, because the Central Bank regulates financial service and so it has to be comfortable with how that technology goes to the bank.

“I was saying to the banks when it was launched that I never got an alert from the banks. All my accounts sent me a link to download e-Naira and my domiciliary account none of them sent to me.”

The CBN has begun licensing telecoms firms like MTN Nigeria and Airtel to run Payment Money Bank.

MTN Nigeria announced early March that it has been granted final approval to operate mobile money (MoMo) payment service bank (PSB) licence.

Ife said, “I had to warn them, look, the CBN cannot regulate technology. It can only regulate the impact of technology on the services that you provide. You either take a revolution or the revolution will overtake you. That technology (blockchain) has come to stay.

“All you need to do is how to work with that technology and for you to be sitting on the defence in the implementation of this, we are also worried that a lot of people are out for your launch because licenses are being given to telcos to get into this field and you know they have money.”