Nigeria’s National Blockchain Policy: Hope for Crypto Amid Central Bank Resistance

Nigerian government approving national blockchain policy, collaboration: security council & NITDA, potential optimism for digital currencies, CBN unlikely to ease stance, balancing regulation & progress. Scene: Futuristic city with digital screens, Nigerian-inspired elements, warm sunset hues, blending technology & tradition, hopeful & dynamic mood.

The Nigerian Federal government recently announced the approval of a “national blockchain policy,” which is a product of widespread consultations with 56 institutions and personalities within the country. According to the country’s minister of communications and digital economy, Isa Pantami, this move signifies the institutionalization of blockchain technology and its components in Nigeria.

Pantami revealed that Nigeria’s security council and the National Information Technology Development Agency (NITDA) have been tasked to jointly develop and formulate regulatory instruments for all sectors related to blockchain technology. This new policy has prompted speculation among Nigerian crypto traders and enthusiasts that the government might start to show a more favorable attitude towards digital currencies.

However, despite the approval of the national blockchain policy, the Central Bank of Nigeria (CBN) is unlikely to reverse its stance on privately issued digital currencies. Lucky Uwakwe, founder of technology service delivery company, Sabi Group, said that the central bank has the legal power to act independently. Even with the new policy approved by the Federal Executive Council, the CBN can still consider digital currencies as a threat to financial stability and maintain its current restrictions.

Uwakwe believes that the only way the CBN’s crypto directive can be removed is if the bank chooses to “delete” its directive from February 5, 2021. Nonetheless, the announcement of Nigeria’s national blockchain policy is seen as a positive development for players in the industry, who now have the official backing of the government. It shows that blockchain technology is “here to stay” in the country, which is a promising sign for the future of the industry.

In summary, the approval of Nigeria’s national blockchain policy signifies the institutionalization of the technology within the country and offers renewed hope for local digital currency enthusiasts. However, the Central Bank’s position on privately issued digital currencies remains a significant roadblock. The future of the Nigerian blockchain and cryptocurrency space will greatly depend on finding a balance between the government’s support and the central bank’s reluctance to embrace privately issued digital currencies.


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