Bola Tinubu, the incoming president of Nigeria, recently unveiled a manifesto that, if adopted, will permit the usage of cryptocurrencies and blockchain technology in the country’s banking and financial industry.
The manifesto urges reviewing existing Nigerian Securities Exchange Commission (SEC) regulations on digital assets to make them more business-friendly. The proposed regulation provides a framework for regulating digital assets like cryptocurrencies and other digital tokens in Nigeria.
According to the proposed regulations, all digital asset offerings and investments must abide by SEC rules and regulations, and digital asset issuers must register with the SEC.
In the manifesto, Tinubu said:
“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 SEC regulation on digital assets creating a more efficient and business-friendly regulatory framework.”
Several supporters of cryptocurrencies have criticized current restrictions for not permitting transactions between crypto users and 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 paper is also in line with efforts to increase the use of the Central Bank of Nigeria’s (CBN) eNaira, the nation’s central bank’s digital currency that hasn’t performed as expected.
The government is proposing changes to SEC laws in the hopes that they will increase investor interest in the financial and technology industries and promote economic expansion.
Tinubu said;
“We will also encourage the CBN to expand the use of our digital currency, the eNaira.”
The manifesto’s release coincides with Nigerians’ increasing crypto adoption, which is among the highest in the world.
Nigerians’ interest in crypto is reflected in the CBN’s milder position toward stablecoins. The bank recently published a research report titled “Nigeria’s Payment System Vision 2025,” exploring the creation of a new framework to introduce a stablecoin in Nigeria.
