A group of blockchain experts in Nigeria believe that blockchain technology can be a key solution to economic issues not only in Nigeria but across Africa, using the currency flow shortage in Nigeria as an example.
During the 2023 Digital Assets Summit organized by the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN) in Abuja, participants talked about the past government’s decision to print new naira notes, Nigeria’s fiat currency, and the recent initiatives to boost the adoption of central bank digital currency (CBDC), both of which contributed to a naira flow shortage at the time.
Christopher Eniayemo, co-founder of Sahara ICP Hub West Africa, mentioned that the decision to print new naira notes could have been executed within a decentralized finance (DeFi) framework, enabling Nigerians to participate in the decision-making process and better prepare for the transition. Blockchain technology underpins DeFi, enabling it to function in a decentralized, transparent, and secure manner, and providing users with a broad range of financial services without the need for conventional financial intermediaries.
However, the current Nigerian President, Bola Tinubu, during his campaign, released a manifesto that, if executed, would permit the application of blockchain technology and cryptocurrencies in the banking and finance sector of the country. The manifesto proposes a revision of the existing regulations by the Nigerian Securities and Exchange Commission on digital assets to make them more conducive for businesses. The revised regulation would provide a structure for regulating digital assets like cryptocurrencies and other digital tokens in Nigeria.
In 2022, Nigeria implemented restrictions on the amount of cash that individuals and businesses could withdraw from banks and ATMs, as part of an initiative to promote a “cashless-Nigeria” policy and increase the usage of its CBDC, the eNaira.
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