Nigeria has approved a National Blockchain Policy to boost its digital economy. A broad range of industries will employ this technology.
Nigeria has taken a few steps forward in its bid to include blockchain technology in its economy. The country’s Federal Executive Council approved a blockchain policy that would help boost its digital economy. The Ministry of Communications and Digital Economy tweeted on May 4 about the policy, with both the public and private sectors involved in the discussions leading to the approval.
The Ministry of Communications and Digital Economy was responsible for developing the policy, which focuses on creating a policy that incorporates all of the benefits of blockchain technology. Regarding this, the press release stated,
“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 Government, thereby enhancing innovation, trust, growth, and prosperity for all. The implementation of the National Blockchain Policy will have a positive effect on both the public and private sectors of the country.”
The press release also suggested that the technology could be utilized in the healthcare, transportation, and supply chain industries, in addition to the financial industry. The agency urged both public and private sector entities to consider implementing blockchain solutions.
Nigeria SEC Will Allow Tokenized Assets
Nigeria has taken other steps with respect to the utility of tokenized assets. The country’s Securities and Exchange Commission aims to allow tokenized assets.
The change would include allowing tokenized coin offerings on licensed digital exchanges. However, these must be backed by assets that include equity, debt, or property, but not crypto. Like other nations, Nigeria is keen on ensuring that there must be a certain standard of investor protection.
Nigeria’s SEC would focus on having fintech firms register as digital sub-brokers, crowdfunding intermediaries, fund managers, and more. It’s the first step in what may be a long line of regulatory actions.
The African Nation Sets Out to Regulate Crypto
Nigerians are extremely fond of crypto and are keen to have the asset class permitted. The government has launched a CBDC called the e-Naira, which Nigerians are taking to. Since its launch in October 2021, about 13 million users have created e-wallets.
In December 2022, the government said it would regulate cryptocurrencies as its central bank had failed to contain a ban it had implemented in early 2021. Amid all of this, bitcoin has been trading at a premium in Nigeria.
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The Nigerian Government has recently approved a new National Blockchain Policy, which is set to enhance the country’s digital economy.
Announced by the Minister of Communications and Digital Economy, Dr Isa Ali Ibrahim Pantami, the new policy seeks to ensure that innovation in the blockchain space remains strong in Nigeria. The policy will provide industry players with a meaningful framework on the safe and secure use of blockchain technology.
According to Pantami, the National Blockchain Policy will create a conducive environment for blockchain developers and start-ups to engage in the development of a vibrant and secure digital economy.
The policy will also help to foster the spirit of innovation amongst Nigerians and ensure that the knowledge and skill-set to develop blockchain solutions remains strong in the country.
Additionally, the policy will create a sandbox environment that allows developers to explore blockchain solutions in the country. This will help to spur the growth of blockchain-based applications and services, as well as give local blockchain start-ups an opportunity to be globally competitive.
Furthermore, the policy seeks to foster the integration of blockchain technology into existing systems, promote greater transparency and reduce the risk of fraud in the digital economy.
The National Blockchain Policy not only has potential to revolutionize the financial services sector, but will most importantly be a driver of technological innovation and help to ensure that Nigeria is able to remain competitive on the global stage.
It will be interesting to see how the implementation of this policy will positively shape the Nigerian economy in the years to come.