Nigeria to pass bill to recognize Bitcoin and other cryptocurrencies

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The slated law comes after Nigeria’s eNaira only achieved a 0.5% adoption rate twelve months after its launch in October 2021. News Collect this piece as NFT. The Nigerian government will soon pass a law that will allow the use of Bitcoin (BTC), and other cryptocurrencies to keep abreast of “global practices.” After an interview with Babangida Ibrahim, chairman of the House of Representatives Committee on Capital Markets, Punch Newspapers reported the news on December 18. According to the report, if the Investments and Securities Act, 2007, (Amendment), Bill is passed, it will allow the local Securities and Exchange Commission “to recognize cryptocurrency and other digital assets as capital for investment.” Ibrahim stressed that Nigeria must keep up with developments and trends in capital markets. We must be current with global practices in order to achieve that. “The report comes nearly 24 months after Nigeria banned cryptocurrency activity in February 2021. The Central Bank of Nigeria (CBN), ordered Nigerian crypto exchanges to cease all activity and required banks to close any accounts of anyone found to be trading. “”When cryptocurrency was first banned in Nigeria, CBN discovered that many of these investors didn’t even use local accounts. They are therefore not under the CBN’s jurisdiction. The law will not allow them to be checked by the CBN because they are not using local accounts. The law comes as Nigerians are not interested in Nigeria’s central bank digital currency (CBDC), which has seen a 0.5% adoption rate in the first 12 months of its launch in October 2022. It will also outline the regulatory roles of the Central Bank of Nigeria and Nigeria’s Securities Exchange Commission (SEC) on matters relating to digital currencies. Adoption continued to rise after the ban in February 2021. Between January and August 2021, Nigerians trailed only the United States in Bitcoin trading volume. Over the same period, Nigerians googled “Bitcoin” more than any other country. According to an April. CoinGecko conducted a 2022 research study. This curiosity is not surprising as Nigerians continue to seek to combat rampant inflation and economic malaise. Nigeria has also entered into discussions with Binance, a cryptocurrency exchange, in September 2022 to create a crypto-friendly economic area that will support crypto and blockchain-related business in the region.

 

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