Nigeria to Create a Cryptobase of Coins
2023.01.10 07:11
Nigeria to Create a Cryptobase of Coins
By Tiffany Smith
Budrigannews.com – Nigeria declares its readiness to accept private stablecoins as well, making it one of the world’s early adopters of its own central bank digital currency (CBDC). The most recent strategy paper from the central bank makes it clear that stablecoins need a legal framework.
The 83-page report from the Central Bank of Nigeria (CBN) examines the creation of a regulatory framework for the potential implementation of a stablecoin and is titled “Nigeria Payments System Vision 2025.” Given that stablecoins are likely to become a successful payment method in the country, the document states that a framework needs to be developed.
The regulation of initial coin offerings (ICOs) is another topic covered in the report. Investors suffered losses as a result of the lack of regulation in the area. The CBN, on the other hand, thinks that ICOs could be used as a new way to raise money for capital projects, peer-to-peer lending, and crowdfunding. As a result, “in the event of adoption of an ICO-based investment solution,” a regulatory framework is also required.
However, the report’s stablecoins and ICOs section is significantly smaller than the one devoted to eNaira, the Nigerian CBDC. It is viewed as a potential “enabler for transformation” in the national economy by the Central Bank. It anticipates that the currency will be fully operational within three to five years.
In an effort to promote its “cash-less Nigeria” policy and encourage the use of the eNaira, Nigeria reduced the weekly cash withdrawal limit from $225 to $1,125 for individuals and businesses in December 2022.
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Since its launch in 2021, a CBDC has had low adoption rates. As revealed by Cointelegraph, the CBN has attempted to persuade its residents to utilize the computerized money, with under 0.5% of the populace detailed having involved the eNaira as of Oct. 25, 2022, a year from its send off.
