Nigeria approves a Blockchain Policy seting the pace for a new wave of Blockchain-based innovation
- In 2021 a survey revealed that Nigeria experienced a 2,467.2% hike in crypto trades.
- The Federal Executive Council approved the Blockchain policy and instructed the relevant regulatory body to act.
- Local blockchain expert Barnete Akomolafe stated that the Nigerian crypto community would finally thrive without hindrance.
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Nigeria has hogged the web3 limelight of Africa for some time. Hailed as one of Africa’s highest crypto trading countries, it has set the bar for digital currency adoption. Fortunately, the nation has surprised its crypto community once more by approving a blockchain policy that might revolutionize its adoption rate. Aside from being Africa’s self-proclaimed crypto hub, Nigeria has astonished the world once more by embracing this new policy.
This new initiative has set in motion several new plans that might see the West African country dive deeper into the web3 ecosystem.
Nigeria’s blockchain policy stems from its previous success.
Terming Nigeria as Africa’s crypto hub is no mere hearsay; the West African country has proven worthy of such a title. Throughout the years, Nigeria has retained one of the highest crypto trading volumes within the continent. The rate of growing Nigeria’s crypto community shocked the world and its governments. In 2021 a survey revealed that Nigeria experienced a 2,467.2% hike in crypto traders.
This shocking revelation initially spurred their government to ban digital currency as a financial product. Fortunately, Nigeria’s crypto community ranked amongst the top trading volumes globally within the same year. This spurred its government to introduce its very of CBDC, the naira.
Following this initiative, Nigerians sought more than just digital currency within the Web3 ecosystem. Soon enough, NFT became one of its top frontiers. The renowned African crypto hub produced the continent’s first-ever NFT artist, Osinachi. He inspired millions to set aside their paint and brushes and dive into the digital world, promising better pay and a better market.
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On one occasion, Chainalysis revealed that Nigeria ranked the first globally to search the term crypto and any related keywords surrounding digital currency.
Soon it became clear that Nigeria was a thriving point for crypto trading, leading to the development of the country’s exchanges. Indeed, Nigeian went from having the highest trading volumes to facilitating crypto trading from Africa. Organizations such as NestCoin and BitPay trace their roots to Nigeria.
Two of Africa’s unicorn startups, Flutterwave and Jumia, have their home base in Nigeria. They have set a pace never seen before in Africa. In addition, its government warmed up to the Nigerian crypto community. Eventually, it developed a framework to aid them in their generosity. As a result of its passion for a crypto hub and its goal of dominating Africa’s web3 ecosystem, its government has established its very own Blockchain policy.
The Nigerian government established a Blockchain Policy.
The Nigerian government approved a National Blockchain Policy on May 3rd 2023. The policy draft stated that blockchain and decentralized ledger technology would facilitate the development of Nigeria’s digital economy. This new policy came to light after Nigeria became a hub for blockchain-based startups. Its inspiration mainly comes from having sevral successful blockchain-based organizations.
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The Federal Executive Council approved the Blockchain policy and instructed the relevant regulatory body to act. They further recommended the creation of regulatory frameworks. This would lead to the proper implementation of blockchain technology in different industries.
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Local blockchain expert Barnete Akomolafe stated that the Nigerian crypto community would finally thrive without hindrance. According to Akomolafe, with the government encouraging its web3 ecosystem, innovators and investors could now pull resources without any limitation from the law.
Aside from propelling crypto trading in Nigeria, the new Blockchain policy would open the door for more decentralized applications. Binance’s West and East Africa director, Nadeem Anjarwalla, stated that Nigeria seeks massive change. Approving the blockchain policy would support user protection and security and encourage economic competitiveness within the franchise.
Aside from establishing a CBDC, this new Blockchain Policy has ensured that the West African country has reclaimed its position at the top of Africa’s web3 ecosystem.
With the establishment of the new blockchain policy, organizations will now efficiently operate within the country. Furthermore, as Africa’s crypto hub Nigeria has set the pace for other African countries and will soon cause a ripple effect for the nation. In truth, many within Nigeria’s crypto community have resisted its CBDC system.
The nation’s dependence on the digital currency has significantly affected its fiat currency but has propelled its economic growth. Nigeria’s blockchain policy will give rise to more e-payment systems.
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In addition, it provides an excellent environment for the progress of its web3 ecosystem. Olajide Abiola, CEO of KiaKai, has stated that besides aiding its economic sector, the new blockchain policy will impact areas of governance and policymaking in Nigeria.
It’s only a matter of time before the country’s competitors, such as Kenya and Soth Africa, make other advances. Unfortunately, its title as Africa’s crypto hub is still self-proclaimed as the race continues to see which country will dominate the continent’s web3 ecosystem.