It has been said that the recent endorsement of a blockchain adoption plan by the government of Nigeria marks a significant development that would “add clarity, trust, and confidence in the [blockchain] ecosystem.” A milestone that would give “some form of legitimacy” to a technology that many Nigerians still only identify with cryptocurrencies has been praised with the release of the adoption plan paper.
Central Bank Is Anticipated to Modify Its Cryptostance
Supporters of the technology have lauded the recent approval of a blockchain adoption plan by the Nigerian government as “a significant milestone for the blockchain industry in Nigeria.” Additionally, advocates have said that the government’s release of the strategy paper lends “some form of legitimacy” to a technology that many people still mistake for Bitcoin.
Following extensive talks with 56 institutions and individuals in Nigeria, Isa Pantami, the nation’s minister of communications and digital economy, approved the blockchain plan. Nevertheless, others in Nigeria’s cryptocurrency community have argued that this good move by the administration of departing President Muhammadu Buhari would not lead to the Central Bank of Nigeria (CBN) changing its stance on cryptocurrencies.
Rume Ophi, the executive secretary of the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), asserts that the Nigerian central bank would ultimately reverse course and begin to regulate cryptocurrencies, just as nations like Saudi Arabia have done. Ophi also suggested that the Bola Tinubu administration would bring about a transformation in the cryptocurrency market in Nigeria.
“A few industry participants believe the policy is only an intellectual exercise, but I believe that over time there will be a balance, much as the Markets in Crypto Assets that have recently been authorized by the European parliament. The incoming [Bola Tinubu] government may take a different course from the previous one,” Ophi added.
The approval of the adoption strategy, according to Nadeem Anjarwalla, director of West and East Africa for Binance, means that Nigeria is “positioning itself as a nation significantly ahead of the curve, supporting further blockchain innovation, user protection, security, and economic competitiveness in the long term.”
The ecosystem, which is currently in its very early phases of growth, will benefit from the adoption plan by having more clarity, trust, and confidence. Anjarwalla praised the “all-encompassing approach” that the Nigerian government had taken, as outlined in the policy statement.
The National Blockchain Adoption Strategy states that the government of outgoing Nigerian President Muhammadu Buhari is confident that the publication of the strategy document will probably support efforts aimed at “creating and fostering an effective, secure, and economically viable digital Nigeria using blockchain technology.”
The Nigerian government expressed trust in the blockchain’s ability to “enable citizens to have more confidence in digital platforms” in addition to facilitating the growth of Nigeria’s digital economy.
The strategy paper concluded by stating that, despite the difficulties that governments are reportedly facing with the blockchain, Nigeria’s attention would be “on the application of blockchain to resolve business and governance process inefficiencies.”
Nigeria is regarded as one of the world’s most cryptocurrency-curious countries.
The value of the Naira continues to decline
The World Bank estimates that in 2022, the value of the naira fell by 10.2%. In 2022, the country experienced substantial inflation as a result of rising food and gasoline prices.
According to the Washington-based bank, 25% of the nations in sub-Saharan Africa would have two-digit inflation rates in 2023. According to Bank of America, the value of the Naira is likely to decrease by 20% in 2023.