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The approval of the National Blockchain Policy in Nigeria has left the country’s cryptocurrency community in seventh heaven as it points to the possibility of further development of the national cryptocurrency industry. Some local experts expressed their opinion on the implications of this new policy in Nigeria in relation to the current blockchain ecosystem in Nigeria.
The Government of Nigeria approved the National Blockchain Policy at a meeting on May 3, 2023. The draft blockchain implementation strategy stated that blockchain and decentralized ledger technology “promotes the development of Nigeria’s digital economy.” Cointelegraph reached out to the local blockchain ecosystem to understand how the industry and community are accepting this policy.
Olajide Abiola, co-founder and CEO of KiaKia, a Nigerian fintech company, expressed his satisfaction with the development. Olajide said that blockchain technology policies could affect various areas of governance and decision making in Nigeria.
He went further by stating that when properly used, blockchain policy can help manage digital identity by creating a tamper-proof digital identity that allows citizens to authenticate their identity and securely access government services. If properly regulated, blockchain technology could also impact e-payments and invoicing in Nigeria, Olajide said.
With this technology yet to be incorporated into Nigerians’ day-to-day activities, businesses can reduce costs and improve cash flow by offering secure and transparent payment options, while consumers can benefit from faster and more convenient transactions. This increased efficiency and convenience could lead to increased economic activity and growth.
The Federal Executive Council, along with the approval of the policy, instructed the relevant regulatory authorities to create a regulatory framework for the implementation of blockchain technology in various sectors of the economy.
Local blockchain expert Barnett Acomolafe of M7pay, a cryptocurrency exchange app, also talked about how important a milestone for governments is to recognize the potential of blockchain technology. By creating blockchain policies and regulations, governments can encourage innovation and investment in the technology, Acomolafe said. The move could lead to economic growth and job creation for Nigerian youth.
In a statement by Binance West and East Africa Director Nadeem Anjarwalla on the policy paper and its implications for the Nigerian blockchain industry, he mentioned that through the approval of the National Blockchain Adoption Policy, Nigeria is positioning itself as a nation on the front of the curve, thereby supporting further blockchain innovation, user protection, security and economic competitiveness in the long term.
Related: Tokens but not Cryptocurrency: Nigerian SEC Prepares New Digital Asset Rules
Anjarwalla praised the comprehensive approach taken in the revised policy paper, based on six key initiatives that include the establishment of the Nigerian Blockchain Consortium, strengthening the regulatory framework, focusing on providing a national digital identity, and promoting blockchain digital literacy. and raising awareness, creating blockchain business incentive programs, and creating a national blockchain sandbox for proof of concept and pilot implementation.
Nigeria is known as one of the most curious countries in the world regarding cryptocurrencies.
