• The Nigerian Federal Executive Council has approved a national blockchain policy to foster the country’s development of a regulatory framework for blockchain adoption.
• This policy was created in collaboration with the Federal Government of Nigeria and aims to create secure blockchain-based transactions and data sharing between individuals, businesses, and governments.
• The Central Bank of Nigeria is also preparing to accept private stablecoins, but a legal framework for regulation is needed first.
Nigerian Government Greenlights Blockchain Policy
The Nigerian Federal Executive Council (FEC) has recently approved a national blockchain policy in response to a memo from the Minister of Communications and Digital Economy, Isa Ali Ibrahim. This policy will enable the country to develop a proper regulatory framework for blockchain adoption in order to facilitate secure transactions and data sharing among individuals, businesses, and governments.
Potential Economic Benefits
A report from PriceWaterhouseCoopers states that global gross domestic product could potentially increase by $1.76 trillion by 2030 if various industries adopt blockchain technology. This long-term projection represents 1.4% of the world’s GDP. To promote digital identity and digital literacy, the FMCDE plans to establish an incentive program as well as a national sandbox for testing and piloting blockchain business models.
Popularity Of Cryptocurrencies In Nigeria
Nigeria ranks second on Google Trends for Bitcoin searches over the past twelve months due to its citizens’ avid interest in cryptocurrencies; however traditional banks have banned crypto transactions in this region due to controversy surrounding it.
Preparations For Private Stablecoins
In January 2023, the Central Bank of Nigeria stated its readiness to accept private stablecoins; however, they need to create a proper legal framework for regulating these projects beforehand.
The Nigerian government has taken steps towards fostering blockchain-based economy by approving this new policy which will help create an environment conducive for safe crypto transactions and data sharing among individuals, businesses, and governments alike..