Blockchain Experts Explore Solutions for Economic Challenges in Nigeria and Africa
Summary:
Experts explore how blockchain technology can address economic challenges in Nigeria and Africa, focusing on the scarcity of Nigeria's currency, the naira. They discuss the potential of decentralized finance (DeFi) and the advantages of blockchain in promoting financial inclusion and citizen empowerment. Nigeria's President, Bola Tinubu, has released a manifesto supporting blockchain and cryptocurrency adoption in the country's banking sector. The manifesto suggests reviewing regulations to create a more business-friendly environment. Nigeria has also implemented restrictions on cash withdrawals to encourage the use of its Central Bank Digital Currency (CBDC), eNaira.
During the Digital Assets Summit 2023 organized by the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), a group of local blockchain experts delved into the potential of blockchain technology in addressing economic challenges in Nigeria and across Africa. They examined the scarcity of Nigeria's naira as a case study, citing the government's decision to mint new currency notes and the country's recent efforts to adopt a Central Bank Digital Currency (CBDC) as contributing factors to the naira shortage. Christopher Eniayemo, Co-Founder of Sahara ICP Hub West Africa, proposed that the decision to print new currency notes could have been made within the decentralized finance (DeFi) system, enabling Nigerians to have more influence and better prepare for the transition. The experts emphasized the significance of introducing blockchain technology to Nigeria and Africa, as it would bolster the advancement of DeFi and empower citizens to have more control over their finances and the economy. They highlighted how blockchain technology provides the necessary infrastructure and principles for DeFi to operate in a decentralized, transparent, and secure manner, enabling a wide range of financial services without relying on traditional intermediaries.
Meanwhile, Bola Tinubu, the current President of Nigeria, revealed a manifesto during his campaign that, if implemented, would facilitate the utilization of blockchain technology and cryptocurrencies in the country's banking and finance sector. The manifesto proposes reviewing the existing regulations of the Nigerian Security Exchange Commission (SEC) with regards to digital assets, aiming to create a more business-friendly environment. This new regulatory framework would govern digital assets, including cryptocurrencies and other digital tokens, in Nigeria. In line with its "cashless-Nigeria" policy and efforts to promote the use of its CBDC, eNaira, Nigeria implemented strict limitations on cash withdrawals by individuals and businesses in December 2023.
Published At
9/8/2023 8:12:41 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.