What Does Nigeria’s Blockchain-Friendly Regulatory Change Mean For Bitcoin Adoption?

This is an sentiment editorial by Heritage Falodun, a Bitcoin advisor and machine idiosyncratic based successful Nigeria.

On May 3, 2023, during a national enforcement assembly gathering presided implicit by President Muhammadu Buhari astatine the assembly enclosure successful Abuja, the Nigerian authorities approved the authoritative usage of blockchain exertion successful the country.

Nigeria’s curate of communications and integer economy, professor Ali Isa Pantami, disclosed the authoritative support of “The National Blockchain Policy For Nigeria,” stating that the “the caller argumentation was a merchandise of consultations with 56 institutions and personalities whose extremity end is to institutionalize blockchain exertion successful Nigeria’s system and information sectors.”

Source

Nigeria’s History With Bitcoin Regulation

Taking a heavy dive into knowing the disposition of the Nigerian authorities toward blockchain-dependent innovations implicit the years volition overgarment a wide representation of however important and important this caller argumentation and national support is for the Bitcoin abstraction successful Nigeria and Africa astatine large.

On January 12, 2017, the Central Bank of Nigeria (CBN) issued a circular which cautioned fiscal institutions and the wide nationalist astir the risks associated with blockchain-dependent technologies, specified arsenic Bitcoin. Building connected that erstwhile informing and directive, connected February 5, 2021, the Central Bank of Nigeria officially prohibited banks from facilitating immoderate Bitcoin- and crypto-related transactions by reissuing the circular — a prohibition that remains unreversed arsenic astatine the clip of writing.

This restrictive argumentation travel astatine a clip erstwhile adoption of Bitcoin and shitcoin-related activities was connected the emergence successful Nigeria, and it was a regularisation that further fueled the usage of Bitcoin and stablecoins arsenic users who are wallowing successful the pains of fiscal regularisation progressively discovered the powerfulness of decentralized Bitcoin innovations, similar peer-to-peer (P2P) marketplaces.

Amid each of these impromptu regulatory measures, CBN was seemingly engaged creating what it considered an alternate to shitcoins: a government-controlled integer currency called the e-naira, which was officially launched connected the October 25, 2021, unequivocally built connected a centralized system, not a decentralized blockchain similar Bitcoin’s. Meanwhile, Nigeria’s Security And Exchange Commission (SEC) was occupied with creating argumentation frameworks for token-issuance platforms and exchanges.

All these regulatory changes were not unconnected to the government's consciousness of conscionable however thriving the blockchain manufacture is successful Africa’s astir populous country.

Source: A draught of Nigeria’s “Nation Blockchain Adoption Strategy”

What Does This Mean For Bitcoin In Nigeria?

At this point, 1 volition people inquire what different regulatory update successful the nationalist blockchain argumentation means for Bitcoin.

A speedy but elaborate effect would be: This is decidedly a welcomed improvement for Bitcoin advocates successful the state and 1 of the perchance galore steps that we mightiness witnesser successful the close direction.

From my interpretation, this argumentation is focused much connected giving a nonstop authorities overview to applicable regulatory bodies specified arsenic the National Information Technology Development Agency (NITDA), CBN, SEC, the Nigerian Communications Commission (NCC) and the National Universities Commission (NUC), among galore others who are present expected to make much elaborate regulatory frameworks from utilizing blockchain-based innovations similar Bitcoin. The authorities is moving from being wholly repelled by oregon antagonistic astir Bitcoin-, blockchain- and crypto-related activities to present accepting them by default and creating a regulatory situation for them to determination forward.

And portion altcoins and different improvement and products babelike connected blockchains excluding Bitcoin inactive basal a accidental to stay regulated and subjected to the directives of these incoming regulations, Bitcoin uniquely repels specified regulations.

As a stakeholder successful the African Bitcoin space, I indispensable confess that accordant clarity from governments volition not lone assistance successful driving adoption but volition besides make an enabling situation for Nigerians to incorporated decentralized blockchain technology, similar Bitcoin, into scaling their businesses and ways of life, portion opening galore ineligible opportunities for everyone.

As the manufacture keeps shaping up, support tabs connected the space, arsenic Nigeria President-Elect Bola Tinubu has promised to alteration the prudent usage of blockchain exertion and cryptocurrencies successful the nation's banking and fiscal sector. My fingers stay crossed until we acquisition afloat implementation of Bitcoin-friendly regulations successful Nigeria.

This is simply a impermanent station by Heritage Falodun. Opinions expressed are wholly their ain and bash not needfully bespeak those of BTC Inc oregon Bitcoin Magazine.