Nigeria May Support Bitcoin and Cryptocurrencies, Says New Report

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The cryptocurrency market and the popularity of bitcoin in Nigeria have grown in recent years. Despite the government banning crypto exchanges in 2021, Nigerians have continued to engage in cryptocurrency-related activities. Most people have become more interested in crypto to gain financial freedom.

A report published by The Punch News after interviewing the Chairman of the House of Representatives Capital Markets Committee, Babangida Ibrahim, stated that the Nigerian Securities and Exchanges Commission will recognize cryptocurrencies as a capital investment. if an amendment to the Investment and Securities Bill 2007 were passed. .

Nigerian capital market must align with global practices, Ibrahim Babangida

Ibrahim Babangida said there was a need for Nigeria to keep pace with trends and developments in the capital markets. In its own words, Nigeria needs an efficient and energetic capital market, and to achieve this, the country needs to align with global practices.

This development came about two years after the Central Bank of Nigeria (CBN) banned crypto activities, forcing banks to close crypto-related accounts. Additionally, the CBN has also ordered local crypto exchanges and service providers to halt their operations.

However, Ibrahim Babangida is of a different opinion. The former president of Nigeria insists that the passage of the law does not mean a total lifting of the ban, but a review of the part of crypto that falls within the scope of the CBN. Ibrahim believes the law will help them review the legality of crypto.

He further explained that the CBN could not monitor crypto investors initially because most of the accounts were foreign and out of its jurisdiction. However, all of this will change when the amendments to the Investment and Securities Act 2007 are approved.

Apart from the legalization of cryptocurrencies, there will be a clear regulatory framework on how the CBN and the Nigerian SEC will oversee digital assets. The deliberations come as the Nigerian Central Bank’s digital currency receives a low adoption rate of 0.05% 12 months after its launch.

Curiosity Continues to Rise Among Nigerians Amid Bitcoin and Crypto Ban

The government’s efforts to enforce its crypto ban proved futile as Nigerians’ curiosity about bitcoin grew. According to an April study by CoinGecko, Nigeria ranks first among countries with the highest curiosity about bitcoins.

Bitcoin Price Rises on BTCUSDT l Chart on Tradingview.com

Despite the crypto ban in February 2021, bitcoin adoption has continued to rise. Nigeria closely followed the United States in bitcoin trading volume from January to August 2021.

Nigerians have continuously explored alternatives to dodge inflation and devaluation of the Naira, hence the increased interest in crypto. In September, Nigeria entered into discussions with Binance to create a crypto-enabled ecosystem to facilitate digital assets and blockchain-related businesses in the country.

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