Nigeria is one of the countries where cryptocurrency adoption is on the rise. In recent years, the country has seen a surge in crypto trading and the use of cryptocurrencies for cross-border payments, remittances, and e-commerce. However, the lack of clear regulations and guidelines for the use of cryptocurrencies has been a hindrance to the growth of the sector.
To address this issue, Bola Tinubu, the Nigerian President-elect, has released a manifesto that includes proposals for the use of blockchain technology and cryptocurrencies in Nigeria’s banking and finance sector. The manifesto proposes a review of the existing Nigerian Security Exchange Commission regulations on digital assets to make them more business-friendly.
The proposed reforms would require digital asset companies to register with the SEC and comply with SEC regulations. The manifesto also proposes the establishment of an advisory committee to review the SEC regulations on digital assets to create a more efficient and business-friendly regulatory framework. The proposed regulations would enable the use of cryptocurrencies and other digital tokens in Nigeria’s banking and finance sector, as well as in identity management, revenue collection, and other areas.
The government hopes that the proposed reforms to the SEC regulations will help attract more investors in the digital and economic sectors and stimulate economic growth. The manifesto also aligns with the Central Bank of Nigeria’s eNaira, the country’s central bank digital currency. The government plans to expand the adoption of the eNaira, which has not lived up to expectations since its launch.
However, some cryptocurrency enthusiasts have criticized the existing regulations for lacking provisions that allow crypto users to transact with their local banks. The proposed reforms to the SEC regulations would address this issue and provide a framework for regulating digital assets like cryptocurrencies and other digital tokens in Nigeria.
The release of the manifesto coincides with the increasing adoption of cryptocurrencies in Nigeria, which is among the highest in the world. According to a report by Chainalysis, Nigeria ranks second in the world in terms of cryptocurrency adoption, after Ukraine. The report notes that Nigeria’s high adoption of cryptocurrencies is driven by a variety of factors, including high remittance fees, currency volatility, and a large young population with a high level of technology adoption.
The Nigerian government’s interest in cryptocurrencies is also reflected in the Central Bank of Nigeria’s milder position towards stablecoins. The bank recently published a research report titled “Nigeria’s Payment System Vision 2025,” which explores the creation of a new framework to introduce a stablecoin in Nigeria.
In conclusion, Bola Tinubu’s manifesto includes proposals for the use of blockchain technology and cryptocurrencies in Nigeria’s banking and finance sector. The proposed reforms to the SEC regulations would enable the use of cryptocurrencies and other digital tokens in Nigeria’s banking and finance sector, as well as in identity management, revenue collection, and other areas. The government hopes that the proposed reforms will help attract more investors in the digital and economic sectors and stimulate economic growth.