Nigeria will switch to Blockchain in banking-Officially
2023.03.10 12:51
Nigeria will switch to Blockchain in banking-Officially
By Ray Johnson
Budrigannews.com – Bola Tinubu, the incoming president of Nigeria, has recently published a manifesto that, if implemented, would make it possible for cryptocurrencies and blockchain technology to be utilized in the banking and finance sectors of the nation.
The manifesto proposes updating the digital asset regulations of the Nigerian Security Exchange Commission (SEC) to make them more business-friendly. A framework for regulating digital assets like cryptocurrencies and other digital tokens in Nigeria is provided by the new regulation.
The proposed regulations would mandate that all digital asset offerings and investments adhere to SEC regulations and require digital asset companies to register with the SEC.
Tinubu stated in the manifesto that: In order to encourage the prudent use of blockchain technology in banking and finance, identity management, revenue collection, and crypto asset use, we will amend the policy. We will form an advisory committee to examine SEC regulation on digital assets and develop a regulatory framework that is more business-friendly and efficient.
Existing regulations have been criticized by cryptocurrency enthusiasts as lacking provisions that permit crypto users to transact with their local banks.
Cryptocurrency users in Nigeria are effectively prohibited from transacting with banks by this SEC regulation.
The published paper also aligns with the plans to expand the adoption of the country’s central bank’s digital currency, eNaira, which has not lived up to expectations.
The government hopes that the proposed change to SEC regulations will encourage economic expansion and bring in more investors in the digital and economic sectors.
“We will also encourage the CBN to expand the use of our digital currency, the eNaira,” Tinubu stated.
The publication of the manifesto comes at a time when Nigerians are adopting cryptocurrency at a rate that is among the highest in the world.
The CBN’s softer stance toward stablecoins reflects the interest in cryptocurrency among Nigerians. The bank recently released a study titled “Nigeria’s Payment System Vision 2025,” which looked into the development of a brand-new framework for introducing a stablecoin in Nigeria.
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