Nigeria Embraces Blockchain Technology to Advance its Digital Economy

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Nigeria‘s Federal Executive Council has approved a National Blockchain Policy. The Ministry of Communications and Digital Economy announced the decision on May 4 via Twitter. Both the public and private sectors contributed to the discussions leading to the policy’s approval.

A Comprehensive Policy to Reap Blockchain Benefits

The Ministry of Communications and Digital Economy has developed the policy, which aims to integrate the benefits of blockchain technology comprehensively. The press release stated the policy’s vision as follows:

“The vision of the policy is to create a blockchain-powered economy that supports secure transactions, data sharing, and value exchange between people, businesses, and the government, thereby enhancing innovation, trust, growth, and prosperity for all.”

The implementation of the National Blockchain Policy is expected to positively impact both the public and private sectors of Nigeria. The press release also indicated that the technology could be employed in healthcare, transportation, and supply chain industries, in addition to the financial sector. The agency encouraged both public and private sector entities to explore blockchain solutions.

Tokenized Assets to be allowed by Nigeria’s SEC

Along with the blockchain policy, Nigeria is making strides in tokenized assets’ utility. The country’s Securities and Exchange Commission (SEC) plans to permit tokenized assets. This change includes allowing tokenized coin offerings on licensed digital exchanges, provided they are backed by assets like equity, debt, or property but not cryptocurrencies. Like other nations, Nigeria emphasizes the need for a certain level of investor protection.

The Nigerian SEC will focus on having fintech firms register as digital sub-brokers, crowdfunding intermediaries, and fund managers, among other roles. This step marks the beginning of a potentially long series of regulatory actions.

Cryptocurrency Regulation in the African Nation

Nigerians are highly enthusiastic about cryptocurrencies and eager for the asset class to be allowed. The government has introduced a Central Bank Digital Currency (CBDC) called e-Naira, which has seen a positive response. Since its October 2021 launch, approximately 13 million users have created e-wallets.

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