In a recent Digital Assets Summit instigated by the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), voices were raised against a 2021 decision of Nigeria’s Central Bank (CBN) to proscribe the use of cryptocurrencies. The gathering’s theme made the objective clear – to assuage the regulatory uncertainty imbued in blockchain-related affairs and plot a new course of action.
At the core of the deliberations, Convexity’s CEO, Adedeji Owonibi, lauded the regulatory regimen surrounding blockchain technology but wasn’t shy to critique the CBN’s reluctance to favorably modify their policy stance. His optimism found root in the National Information Technology Development Agency’s (NITDA) recent move towards the establishment of the maiden National Blockchain Policy in May, which will safeguard creators, investors, and users.
Nevertheless, the progression hasn’t been without roadblocks. Regulatory hurdles have emanated chiefly from a lack of understanding regarding the fundamental workings of the technology. Moreover, the CBN’s ban on cryptocurrencies two years prior also stems from a fear that cryptocurrencies could “destabilise” the national economy. Irrespective of these concerns, Nigeria leads on global scales in the realm of blockchain awareness.
Signs of a paradigm shift are emerging as the government grows increasingly pro-blockchain. This is evidenced by NITDA’s actions – they’ve established committees to facilitate significant changes in blockchain regulation, involving stakeholders such as CBN and the Nigerian Communications Commission.
Emphasis was also placed on Web3 Education, a priority necessity highlighted by Web3 start-up founders and particularly Bello Abdullahi, Bitkova’s COO. With an aim to overcome language barriers that impede blockchain penetration in a multilingual country like Nigeria, Abdullahi called for making more crypto-based content approachable through local languages.
The acceptance of cryptocurrencies by the Nigerian public, despite the rigidity of regulations, is indicative of the sector’s resilience. Data from Google reveals Nigeria to be among the top countries in terms of Bitcoin (BTC) Google searches. Add to this, crypto functionality, providing a buffer against harsh economic policies, further stokes optimism.
The promulgation of the amended Financial Act 2023, recognizing digital assets as taxable property, has further bolstered this positivity. Another feather in the cap for Nigeria’s blockchain initiative is the blockbuster announcement about the issuance of blockchain-based certificates to National Youth Service Corp (NYSC) program graduates. These strides notwithstanding, the journey to a blockchain-propelled future is fraught with regulatory uncertainties.
Source: Cryptonews
