Godwin Emefiele (Nigeria’s central bank governor) recently noted that fintechs and other technologies have forced financial institutions and banks to change their operations. Emefiele said that this necessitates that the central bank’s Monetary Policy Committee (MPC), rethink how it regulates the financial sector.
According to reports, Godwin Emefiele (the governor of the Central Bank of Nigeria) stated that the MPC must set a new course for Nigeria’s monetary policy.
Emefiele, speaking at the so-called MPC retreat said that new technologies and innovations play an important role in Nigeria’s development. Therefore, the MPC must make decisions to increase the contribution of these technologies going forward.
In his remarks published in Daily Nigerian, Emefiele , a Bitcoin critic, argued that cryptos and fintechs have altered the way the financial sector functions, and this requires a rethink. He stated:
The functioning of the banking and financial sectors has been affected by the development of fintechs, cryptocurrencies and digital payments. The urgent need to rethink financial regulation, supervision, and implementation of monetary policy is evident.
While new technologies and innovations can be associated with uncertainties and risks, Emefiele insists that they also offer many benefits, including better access to financial services, poverty relief, and the creation of employment.
Stay Relevant in a Changing world
The Daily Nigerian reports that the CBN governor has urged MPC members to become familiar with the monetary policy tools and goals relevant to a digital world.
Emefiele stated that “In order for monetary policy to be relevant and the role of monetary authority in the new digital age, MPC members should embrace an advanced level understanding of how digitalization interacts with monetary policies objectives, targets, and tools.”
Emefiele stated that the MPC retreat was important because it allows the central bank to evaluate its performance over the past three to four years.
