The Nigerian government might just be showing signs of changing her stance concerning cryptocurrency in Nigeria after reports revealed last week that the government has considered developing her own digital currency.
Despite a boisterous population, the Nigerian government is quite known for its less favorable take on the digital currency industry and the incessant warnings from influencers from the Central Bank of Nigeria (CBN). While this could have driven potential investors in the cryptocurrency trade away, it has otherwise been the case, as the result of a study, earlier this year revealed. In a country with a practically hostile government against crypto policy, statistics from the data gotten from a Nigerian cryptocurrency platform, KureCoin Hub, showed that Nigerian investors have invested over $5 million over the past few years.
Blockchain Keeps Racking Up Admirers
Perhaps, the continual indulgence of Nigerian citizens has turned the heads of the government to finally consider the prospect of blockchain and crypto technology towards the development of the country. Kabir Katata, the Deputy Director of the Research Department (NDIC), revealed an exciting development in his discussion on ‘the evolution of virtual currency.’ Nigeria is after all interested in developing its own cryptocurrency, according to Katata, but the government is however carefully monitoring all adverse risks that could be associated with it. The NDIC, which Katata oversees, was similarly established by the government to protect funds deposited by concerned parties while checking and ensuring the firmness of Nigeria’s adopted system of banking.
The Nigerian banking system might have been around for years, but Katata revealed that the blockchain technology might be offering a significant edge over present incorporated systems: banks and government agencies are not ignoring this possibility as active research is being carried out to implement blockchain in respective possible fields.
Regulators Being Extra-Careful
Katata in his talk explained why the government and private sectors in Nigeria are not jumping on the crypto boat too easily. While he recommends that the underlying technology behind cryptocurrencies could be of significant impact across diverse fields, he observed that the relative newness of the technology could be making authorities cautious. He said:
“Digital currencies, though a new phenomenon, is gaining popularity across the globe and are associated with a lot of risks. That is why regulatory/supervisory authorities in many countries are seriously concerned about DCs.”
What this Means for Nigeria
From the aspect of cryptocurrencies, as of late, Nigeria has been generating quite favourable news. Just last week, Atiku Abubakar, the biggest opposition to the incumbent president, Muhammed Buhari— prior to 2019 general election— revealed grand plans to regulate cryptocurrencies in Nigeria once he assumes office. Publishing a policy document, the former vice president unveiled his vision concerning technological development in the country and the importance of blockchain in all of it.
This could only mean one thing: Nigeria is finally taking a step in the right direction as regards digital currency.