Cryptocurrency transactions have reached $59 billion in Nigeria, underscoring a financial shift that banks can no longer ignore, according to financial experts. Traditional banks face mounting pressure to integrate blockchain and crypto services or risk losing relevance.
Key Insights from Experts
Regulatory Shift: Banks once avoided crypto due to regulatory concerns, but global trends indicate a move from de-risking to risk management.
Blockchain’s Role in Transparency: Experts emphasize that blockchain’s immutable ledger improves financial transparency, making it easier to track illicit activity than in traditional banking.
Growing Institutional Interest: KPMG’s Oluwaseun Odeku stresses that integrating blockchain into banking will enhance financial transparency and risk management.
Banks Still Essential: Arushi Guel (Chainalysis) highlights that while crypto exchanges facilitate transactions, they still depend on banks for fiat settlements.
Why Banks Can’t Ignore Crypto
1. Mass Adoption: Crypto use is rising due to currency depreciation and inflation, making it a lifeline for many.
2. Regulatory Acceptance: Nigerian authorities, including the CBN and SEC, are developing clearer oversight frameworks to regulate Virtual Asset Service Providers (VASPs).
3. Security & Fraud Prevention: In 2024, crypto scams totaled $10 billion, pushing regulators to enhance fraud detection.
The Future: Banks & Crypto Coexistence
Financial institutions must decide whether to embrace blockchain, form partnerships, or risk becoming obsolete. As Guel puts it:
“We need sufficient oversight—not bans—to manage risk. Blockchain analytics provides traceability that traditional finance lacks.”
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