Blockchain can bridge the gap in the financial system’s infrastructure – US-based don

Nigerian-born fellow at Westcliff University College of Business, California, USA, Dr Malik Abdullahi, talks to DEBORAH DAN-AWOH on how Nigeria can maximize blockchain technology and stamp duty for economic growth

Recently, there were concerns about the accuracy of stamp duty in the country. What are your thoughts on this?

The allegations may be true. The financial institutions have the means or ability to independently manipulate the numbers, and the government cannot determine the extent of the manipulation. In fact, any government effort to recover through third-party audit may not produce a credible result and will impose an additional financial burden on the government. I will explain in more detail how FI is able to carry out such unethical behavior

Blockchain is still a new technology in the country, can you help us understand it better?

Blockchain is not a new technology. BCT is an amalgamation of many old individual technologies. For example, cryptography is part of the BCT technology and cryptography is a very old technology and the rest of the technologies. What happened is that researchers were able to select and combine specific individual technologies to create a single technology that embodies the combined capabilities of one technology. These individual technologies come with special functions that can create value in the form of security, efficiency and trust, among other things. From here, everyone is now trying to build out used cases from the technology given its natural characteristics.

What role do you think it will eventually play in the country’s financial system?

BCT is the hope of anti-corruption campaigns. In fact, BCT is divine and it is for the purpose of corrupt nations. BCT will play a very large role in the financial industry. With BCT, banks do not need to invest heavily in infrastructure as they currently do. BCT will also benefit the people as it will drastically reduce transaction costs through disintermediation of the banks and their fees. BCT will benefit the government as it will help protect government revenue through the removal of corruption

During the recent cash shortage, many individuals argued that the inadequacy of the country’s banking infrastructure set the stage for blockchain. Do you agree with this position?

The scarcity of cash was not an infrastructural problem but a man-made problem. However, adoption of BCT is a must and it is the future.

How can blockchain be implemented for stamp duty collection?

The current banking system is inherently built with some features that are not meant for unethical activities, but can be used or used to manipulate records for the benefit of the financial institutions. These systems’ weaknesses can be corrected with the implementation of blockchain technology. This is where I come in. Blockchain can be implemented to temper the stamp duty transaction records and produce accurate reporting on the revenue generated by financial institutions. To temper the records, there will be a need to integrate BCT with the current database system of the bank. The integration of BCT with the current banking system will introduce BCT’s special functions that solve any possible leakage.

What role do you think blockchain will play in facilitating payments for SMEs?

BCT is peer-to-peer. As such, it will eliminate the need for the bank with all its attendant fees. However, the banks will have to find a new role and a new way of making money.

With its large crypto market, why do you think no local cryptocurrency has been launched in Nigeria?

It is not safe for lack of regulations or regulatory frameworks/institutions to govern the crypto market.

The crypto market has had to deal with many failures recently. How do you think this will affect the future of the ecosystem?

Well, people have seen the weaknesses and advantages of the crypto market. So failures and successes will inform investors and stakeholders about future direction and models.

Is It Time For Nigeria To Regulate Cryptocurrencies?

Oh yes. We don’t have to wait for mature adoption of crypto to start formulating policies to govern the market.

You recently wrote a paper to the Nigerian government on the implementation of blockchain technology to control stamp duty collection. What other part of governance can blockchain help to simplify?

BCT can be used in many areas. You can think about corruption and security. BCT is a reliable technology that is expected to replace human intervention in public processes and activities. The uses of BCT are endless.