Nigeria’s blockchain revolution has a problem – Cryptopolitan

Nigeria recently approved a national blockchain policy that promises to bring about significant development in the country’s fast-growing crypto industry.

However, the nation’s blockchain revolution faces some serious challenges, with local experts voicing concerns about the implications of this new policy on the Nigerian blockchain ecosystem.

The potential of blockchain technology in Nigeria

The Nigerian government approved the National Blockchain Policy during a meeting on May 3, 2023. The policy aims to facilitate the development of Nigeria’s digital economy by leveraging blockchain and decentralized ledger technology.

Olajide Abiola, co-founder and CEO of the Nigerian fintech company KiaKia, believes that the policy has the potential to influence various areas of governance and policy-making in the country

Abiola says that with proper implementation, blockchain technology can help manage digital identity, create a tamper-proof digital identity for citizens and enable them to secure access to public services.

In addition, it can impact e-payments and invoicing, with businesses benefiting from reduced costs and improved cash flow while offering secure and transparent payment options.

Regulations and economic growth

The Federal Executive Council has instructed relevant regulatory bodies to create frameworks for the implementation of blockchain technology in various sectors of the economy.

Local blockchain expert Barnette Akomolafe of crypto exchange app M7pay emphasizes the importance of governments recognizing the potential of blockchain technology and encouraging innovation and investment through policies and regulations.

This can lead to economic growth and job creation for Nigerian youths.

Nadeem Anjarwalla, Binance’s West and East Africa director, also praised Nigeria’s forward-looking approach.

He believes that by approving the policy, the African country is positioning itself as a nation that supports blockchain innovation, user protection, security and long-term economic competitiveness.

Six key initiatives in the national blockchain policy

Anjarwalla praised the policy document’s comprehensive approach, focusing on six key initiatives.

These include establishing the Nigeria Blockchain Consortium, strengthening the regulatory and legal framework, providing national digital identity, promoting blockchain digital literacy and awareness, creating blockchain business incentive programs, and creating a national blockchain sandbox for proof of concepts and pilot implementation.

Despite the enthusiasm surrounding the national blockchain policy, Nigeria’s blockchain revolution faces some obstacles. The technology has yet to be fully integrated into the daily activities of Nigerians and the country has to overcome significant challenges to fully embrace the potential of blockchain technology.

To achieve a successful blockchain revolution, Nigeria needs to invest in digital literacy and awareness, develop a solid regulatory and legal framework, and provide incentives for businesses and individuals to adopt blockchain technology.

In addition, the nation must ensure that the technology remains secure, transparent and accessible to all citizens.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com has no responsibility for investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.