Block chain is an emerging innovation which is gaining traction in the payment system, banking and so many areas. The most prominent innovation on top of block chain so far is bitcoin, which people see as an alternative form or alternative currency that we all use. And it is beginning to gain so much ground across the world. How will it affect payment? Obviously, some people are already using it to make payment. Largely, the technology offers efficiency which means it is going to reduce cost of transaction, as a result of that you will see it that people are beginning to think that this will be a silver bullet for solving financial exclusion. So we see those who are already thinking along that line. So we may see a situation where financial inclusion may be an advantage through block chain technology either using bitcoin or the central bank deciding to even have its own physical currency. As we know today we have other several currencies, digital currency as we call them that rival bitcoin. Up to a thousand of them or so, so when you think of that big stake out there, there is need for caution because no one, there is no central bank or control to it.
I can build my own bank and do my payment as I like and nobody will know what I am doing. At the same time the risk is also there. We all know the issue of terrorism that we have, the issue of organised crime that can be excavated by such innovation without appropriate risk framework around.
However the advantages are there and there have been various reviews being done by even international banks, central banks around the world and of course CBN is not left behind. We are reviewing it and looking at how it can be of good use while also managing the risk that arises.
