Nigerian president-elect aims to use blockchain technology in the banking sector
Nigerian President-elect Bola Tinubu has not too long ago launched a manifesto that, if carried out, would allow the usage of blockchain know-how and cryptocurrencies within the nation’s banking and finance sector.
The manifesto suggests reviewing present Nigerian Safety Trade Fee (SEC) rules on digital property to make them extra business-friendly. The brand new regulation offers a framework for regulating digital property like cryptocurrencies and different digital tokens in Nigeria.
The advised rules would require digital asset firms to register with the SEC and mandate that every one digital asset choices and investments adjust to SEC rules.
Within the manifesto, Tinubu mentioned: “We are going to reform the coverage to encourage the prudent use of blockchain know-how in banking and finance, identification administration, income assortment and use of crypto property. We are going to set up an advisory committee to assessment SEC regulation on digital property making a extra environment friendly and business-friendly regulatory framework.”
Some cryptocurrency fans have criticized present rules for missing provisions permitting crypto customers to transact with their native banks.
this present SEC regulation on crypto in Nigeria is de facto not letting crypto customers make transactions with banks.
— Son of Timothy (@ObiUcheUzoije) March 7, 2023
The revealed paper additionally aligns with the Central Financial institution of Nigeria’s (CBN) eNaira — the nation’s central financial institution digital foreign money — and plans to increase the adoption of the foreign money, which has not lived as much as expectations.
Associated: Nigeria revisits its funds panorama amid sluggish eNaira adoption
The federal government hopes the proposed reform to SEC rules will assist entice extra traders within the digital and financial sectors and stimulate financial development.
Tinubu mentioned, “We can even encourage the CBN to increase the usage of our digital foreign money, the eNaira.”
The manifesto’s launch coincides with Nigerians’ rising crypto adoption, which is among the many highest on the earth.
Nigerians’ curiosity in crypto is mirrored within the CBN’s milder place towards stablecoins. The financial institution not too long ago published a analysis report titled “Nigeria’s Cost System Imaginative and prescient 2025,” exploring the creation of a brand new framework to introduce a stablecoin in Nigeria.
