Nigeria Greenlights Blockchain Policy: $1.76T Benefit by 2030
• The Nigerian Federal Executive Council recently approved a national blockchain policy in order to develop a proper regulatory framework for blockchain adoption.
• The policy aims to create a framework for executing secure blockchain-based transactions and data sharing among individuals, businesses, and governments.
• Nigeria is poised to create a legal framework for regulating private stablecoins.
Nigerian Government Greenlights Blockchain Policy
The Nigerian Federal Executive Council (FEC) has approved a national blockchain policy in their recent meeting. This policy will enable the country to develop a proper regulatory framework for blockchain adoption as citizens have shown an avid interest in cryptocurrencies. Additionally, the Federal Ministry of Communications and Digital Economy (FMCDE) is collaborating with the Federal Government of Nigeria to implement this policy which is part of the seventh pillar of digital economy policy and strategy.
Policy Aims To Create Framework For Secure Transactions
The national blockchain policy aims to create a framework for executing secure blockchain-based transactions and data sharing among individuals, businesses, and governments. Additionally, the FMCDE has instructed regulatory bodies such as the Central Bank of Nigeria, National Universities Commission, and Nigerian Communications Commission to create and implement regulations in various sectors. Furthermore, strategies have been proposed such as promoting digital identity and encouraging digital literacy as well as establishing national sandboxes for testing purposes.
Potential Impact On Global Economy
According to PriceWaterhouseCoopers’ report from 2020, adopting blockchain technology across various sectors could potentially contribute $1.76 trillion to global gross domestic product by 2030 which amounts up 1.4% of world’s GDP. Thus it can be inferred that implementing this technology can bring immense economic benefits over long term period globally despite initial investment costs associated with its development process.
Regulatory Framework Creation For Stablecoins
Nigeria ranks second on Google Trends for Bitcoin searches over past twelve months making it one of early pioneers of CBDCs in Africa having rolled out e-Naira already. Currently Central Bank of Nigeria stated its readiness to accept private stablecoins but requires legal frameworks regulating such projects first before implementation can take place properly .
In conclusion it can be inferred that developing countries like Nigeria are increasingly taking initiatives towards creating conducive environment within their economies so that powerful technologies like Blockchain can be adopted more widely for achieving desired economic outcomes over longer time frames both at regional level as well international level .