Nigeria's SEC Director General Sees Crypto as Financial Lifeline for Unbanked Citizens
Summary:
Nigeria's SEC Director-General, Emomotimi Agama, reflected on the important role of cryptocurrency in financial inclusion for the unbanked. At ACMAN's annual conference, he predicted that Nigeria's crypto market could reach $52.5 million by 2028, given its current value of over $400 million. Agama emphasized the advantage of cryptocurrencies in offering financial services, and its potential in reducing remittance costs. He acknowledged the challenges of cryptocurrency use, such as regulatory uncertainty and security concerns, and underscored the need for a balanced regulatory approach.
Emomotimi Agama, Nigeria's Securities and Exchange Commission (SEC) Director General, underscored the significant role cryptocurrency can play as a financial boon for the country's unbanked citizens. Speaking at the Association of Capital Market Academics of Nigeria (ACMAN)'s annual conference in 2024, local media reported his projection of the Nigerian cryptocurrency market attaining a value of $52.5 million by 2028. Currently worth over $400 million, the country's crypto market enjoys active participation in trading and transactions with approximately a third of Nigerians owning or using cryptocurrencies. Agama pointed out the unique proposition this presents in extending financial services to the 38 million adult Nigerians who are unbanked. Despite some of them being without bank accounts, they were able to utilise digital wallets, he said, highlighting crypto's ease of access. Agama also noted that cryptocurrencies can greatly decrease costs related to remittances with Bitcoin transactions forming an affordable conduit for Nigerians abroad to send money home, given Nigeria's status as one of Africa's top remittance receivers. Acknowledging the challenges in cryptocurrency use such as regulatory unpredictability, security concerns, and issues around financial literacy, Agama underscored the necessity of a thoughtful regulatory approach that balances the benefits and risks of crypto assets. He stressed that robust regulatory guidelines, enhanced cybersecurity measures and financial education are crucial for investor protection and for fostering a robust digital asset market. Emomotimi Agama was appointed by Nigerian President Bola Ahmed Tinubu as the SEC chair in April, prior to which he was the managing director of the Nigerian Capital Market Institute (NCMI). Following his appointment, the SEC initiated an amendment to the original Digital Assets Issuance, Offering Platforms, Exchange and Custody Rules. This is specifically aimed at virtual assets service providers (VASPs) and lays out a roadmap for aligning with new regulatory norms.
Published At
6/28/2024 2:31:12 PM
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