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Is Nigeria Preparing for Crypto Adoption?


Nigeria wants to introduce a law that recognizes the use of Bitcoin and other digital currencies in accordance with “global practices”. Despite the BTC ban in 2021, this year has seen a huge increase in the volume of BTC sold domestically.

Although Bitcoin (BTC) fell to the highest level in the last two years, many organizations around the world still see it as a tool against inflation. Nevertheless, Africa has become the continent with the largest use and adoption of BTC. According to local media, Nigeria, a country in West Africa, will soon introduce a law on the use of Bitcoin and other digital currencies that make it aware of “global practice”.

Punch Newspapers, a Nigerian newspaper, disclosed this story on December 18, after speaking with Babangida Ibrahim, the chairman of the House of Representatives Committee on Capital Markets. According to the report, the country’s Securities and Exchange Commission will be able to “recognize bitcoin and other digital currencies as investment funds” if the Investments and Securities (Amendment) Bill 2007 is enacted.

Ibrahim emphasized the need for Nigeria to master the capital market and development process:

“We need a well-functioning and robust capital market in country as I said during the second reading. We need to know international standards to achieve this.

Acceptance of Bitcoin in Nigeria

In light of this event, it is important to note that Nigeria has banned the use of Bitcoin and other cryptocurrencies in 2021 and has issued a letter prohibiting regulated financial institutions from “dealing” with cryptocurrencies.

On the other hand, this year has seen a huge increase in the volume of BTC traded domestically, and according to Chainalysis, the West African country has broken the cryptocurrency adoption record.

In addition to the legal issuance of Bitcoin and other cryptocurrencies, the bill will define the regulatory role of the Central Bank of Nigeria (CBN) and the Securities Exchange Commission (SEC) (Nigeria) on topics related to digital currency in addition to issuing law enforcement. Acceptance of BTC and other cryptocurrencies, such as articles. eNaira, the digital currency issued by Nigeria’s central bank, has received little interest from Nigerians, with an acceptance rate of just 0.5% in October, 12 months after its introduction. .

Nigeria is one of the most populous countries in Africa, and if the law comes to address the concerns of investors, there may be a greater adoption of Bitcoin, which may spread to other countries in the future. near. Although the use of cryptocurrency is currently banned in the country, cryptocurrency is widely used in the region. Crypto miners are also active here, and a Bitcoin community is being built.

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