Nigerian President-elect Bola Tinubu has recently released a manifesto that, if implemented, would allow the use of Blockchain technology and cryptocurrencies in the country’s banking and financial sector.
The manifesto suggests reviewing the current regulations of the Securities and Exchange Commission (SEC) of Nigeria on digital assets to make it more favorable to companies. The new regulations provide a framework for regulating digital assets such as cryptocurrencies and other digital tokens in Nigeria.
The proposed rule would require digital asset companies to register with the SEC and would require all digital asset offerings and investments to comply with the regulator’s rules.
In the manifesto, Tinubu states: “We will reform the policy to encourage the prudent use of blockchain technology in banking and finance, identity management, revenue collection and use of crypto assets. We will establish an advisory committee to review the SEC regulation on digital assets creating a more efficient regulatory framework and business friendly.
Some cryptocurrency enthusiasts have criticized existing regulations for lacking provisions allowing users to transact with their local banks.
This existing SEC regulation on crypto in Nigeria is really not letting crypto users make transactions with banks.
— Son of Timothy (@ObiUcheUzoije) March 7, 2023
The published document is also aligned with the Central Bank of Nigeria (CBN) eNaira – the digital currency of the country’s central bank – and plans to broaden the adoption of the currency, which has not lived up to expectations.
The government hopes that the proposed SEC rule reform will help attract more investors to the digital and economic sectors and stimulate economic growth.
Tinubu stated: “We will also encourage the CBN to expand the use of our digital currency, the eNaira.”
The release of the manifesto coincides with the growing adoption of cryptocurrency by Nigerians, which is among the highest in the world.
Nigerians’ interest in cryptocurrencies is reflected in the CBN’s more dovish stance towards stablecoins. The bank recently published a research report titled “Nigeria’s Payment System Vision 2025,” in which it explores creating a new framework for introducing a stablecoin to Nigeria.
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