{"id":4908,"date":"2023-05-06T03:04:41","date_gmt":"2023-05-06T07:04:41","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/nigerian-government-greenlights-policy-to-foster-blockchain-based-economy-details\/"},"modified":"2023-05-06T03:04:42","modified_gmt":"2023-05-06T07:04:42","slug":"nigerian-government-greenlights-policy-to-foster-blockchain-based-economy-details","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=4908","title":{"rendered":"Nigerian Government Greenlights Policy to Foster Blockchain-Based Economy \u2013 Details"},"content":{"rendered":"
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Nigeria’s Federal Executive Council has approved a national blockchain policy<\/u><\/a> in a recent meeting.<\/p>\n

This policy will enable the country to develop a proper regulatory framework for blockchain adoption.\u00a0<\/p>\n

Nigeria is one of the nations whose citizens have an avid interest in cryptocurrencies.\u00a0<\/p>\n

However, crypto transactions involving traditional banks are considered illegal<\/u> in the region due to a controversial ban.<\/p>\n

Federal Executive Council Approves Blockchain Policy Adoption<\/h2>\n

The Nigerian Federal Executive Council (FEC) has approved a national blockchain policy, responding to a memo from the Nigerian Minister of Communications and Digital Economy, Isa Ali Ibrahim.<\/p>\n

Also, in an official announcement, the Federal Ministry of Communications and Digital Economy (FMCDE) referred to a report from PriceWaterhouseCoopers<\/u>.\u00a0<\/p>\n

The report from 2020 states that adopting blockchain technology across various sectors and industries could potentially contribute $1.76 trillion to the global gross domestic product by 2030.\u00a0<\/p>\n

This long-term projection represents 1.4% of the world’s GDP.<\/p>\n

The FMCDE developed this policy in collaboration with the Federal Government of Nigeria, correlating to the seventh pillar of digital economy policy and strategy.\u00a0<\/p>\n

The policy aims to create a framework for executing secure blockchain-based transactions and data sharing among individuals, businesses, and governments.\u00a0<\/p>\n

Notably, the FMCDE has instructed regulatory bodies<\/u><\/a> to handle the regulatory framework creation and implementation in various sectors.\u00a0<\/p>\n

These bodies include the Central Bank of Nigeria, the National Universities Commission, and the Nigerian Communications Commission.<\/p>\n

The FMCDE aims to use different strategies to encourage blockchain adoption, such as promoting digital identity and encouraging digital literacy.\u00a0<\/p>\n

Also, it plans to establish a national sandbox for testing, piloting, and hosting blockchain business and incentive programs.<\/p>\n

Nigeria Poised To Create Regulatory Framework For Stablecoins<\/h2>\n

Nigeria ranks second on Google Trends for Bitcoin searches over the past twelve months.<\/p>\n

Indeed, Nigeria is one of the early pioneers of CBDCs in Africa, rolling out the e-Naira.\u00a0<\/p>\n

Currently, the Central Bank of Nigeria stated in a report in January 2023<\/u> its readiness to accept private stablecoins.\u00a0<\/p>\n

However, a legal framework for regulating such projects is a priority for the financial regulator.\u00a0<\/p>\n

Notably, the Central Bank of Nigeria’s e-Naira has struggled to gain prominence thus far, with less than 0.5% of the population<\/u> using the digital asset as of October 25, 2022.\u00a0<\/p>\n

However, the recent blockchain policy adoption may finally improve the performance of digital assets and the Nigerian CBDC.<\/p>\n<\/p><\/div>\n