We respect the institutions of our democracy but increasingly, I am hoping to wake up to read that the Central Bank of Nigeria (CBN) has published a regulatory framework on how Nigerian young people will get back into what they were doing as “makers”, “innovators” and “players”, over being “spectators”. Yes, as the Vice President of Nigeria said: regulate the cryptocurrency sector but do not prohibit! Unfortunately, it seems like CBN did not get that memo.
From Nigeria’s Vice President Yemi Osinbajo on how he sees the CBN ban of cryptocurrency and Bitcoin; “I fully appreciate the strong position of the CBN, SEC, and some of the anti-corruption agencies on the possible abuses of cryptocurrencies and their other well-articulated concerns, but I believe that their position should be the subject of further reflection.
“There is a role for regulation here. And it is in the place of both our monetary authorities and SEC to provide a robust regulatory regime that addresses these serious concerns without killing the goose that might lay the golden eggs. So it should be thoughtful and knowledge-based regulation not prohibition.
People, this curve looks parabolic and if you check it carefully, the mathematically variance over weeks is not evidently huge, yet, I concede, on daily moving averages, it is outside an acceptance threshold, and volatile. My point is this, except the scale, the chart shape looks like a typical stock that is doing well in the market! In other words, at monthly moving averages, it is not very volatile [too technical here].
Why am I writing this? A co-founder of an exchange in Lagos sent me a note with “Prof, I am looking for a job”. I asked him why? He responded, “I am scared to try something else – I do not know which bans will come next. So, I just want a job to avoid those risks”.
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That is the risk: the season of bans is affecting the psychology of our young people. It is like what is happening in the northern part of our nation where kidnappers are waging wars to ensure kids do not attend schools by putting the fear of kidnapping, thereby achieving via another means what they have wanted to achieve.
Nigeria needs a better engagement as every piece helps. The CBN should get these innovators and provide a path for them to comply and participate in the world of the future. This curve is parabolic, and if you look at the variance, on monthly averages, the volatility looks like a typical growing stock. Allow the young to take risk and ensure that risk does not cause systemic risks to the economy.
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When the man Trump held sway as POTUS, many people here lectured us on how he’s not ‘presidential’, and how he brought the institution to disrepute. The Twitter ban came, and some rationalised it, arguing the man was different from the office, and as long as POTUS handle was active, all well and good! Sounds great? Not so much.
Why that analogy up there? Because to respect our democratic institutions, it’s very important that the occupants are deserving of such respect too, else it becomes complicated. If you have a great institution but filled with funny creatures as managers, how do you maintain the respect and uphold their decisions. This is very instructive.
A sound mind in a sound body, is what makes up a sound person. If any part is defective, then you cannot have a sound human. If the CBN is a respectable institution, what happens if the occupants fall short of what is required of such respectable institution? Herein lies the puzzle.
Today is Friday, and I was born on a Friday; so I come in peace.
May we all live in interesting times.