Flutterwave, CBN, SEC, others to lead FG implementation policy on blockchain, cryptocurrency

Flutterwave, Africa’s leading payment technology company, the Central Bank of Nigeria (CBN), and the Securities and Exchange Commission (SEC) are among the institutions that will lead the implementation of the national blockchain policy for Nigeria.

The three leading financial institutions were among over 50 other institutions and personalities tasked with developing regulatory instruments within their sectors to facilitate the implementation of the policy.

The institutions are put together in the steering group to implement the policy, which requires cooperation between the private and public sectors.

In the Financial Services Adoption Policy Statement, the federal government is expected to establish a regulatory framework that enables the integration of blockchain technology into the financial system while ensuring the protection of consumers and the stability of the financial system.

On Wednesday, the federal government approved the implementation of the national blockchain policy.

Isa Pantami, the Minister of Communications and Digital Economy, disclosed that the approval was a significant move and a step towards Nigeria’s digital transformation.

Pantami said the policy would institutionalize blockchain technology in the country, stressing that it would also be adopted in various sectors such as banking, security, education and trade industries.

“A National Steering Council will be established to coordinate the efforts of relevant state institutions towards the implementation of the policy,” he said shortly after the Federal Executive Council meeting in Abuja.

According to him, Nigeria has now joined countries like the UK, Denmark, Switzerland, Estonia, Georgia, Singapore and the United Arab Emirates in legalizing and endorsing blockchain technology.

He added that blockchain technology would also help ensure data integrity and could add up to $1.76 trillion to global GDP by 2030.

Recall that on February 5, 2021, the Buhari regime placed a ban on the use of cryptocurrency through the Central Bank of Nigeria (CBN).

Nigeria’s apex bank also directed the banks to close the accounts of people and entities involved in cryptocurrency transactions in their systems.

The CBN had then claimed that digital currencies like bitcoin, litecoin and others are largely used in terrorism financing and money laundering, considering the anonymity of virtual transactions.

“Cryptocurrency is used to describe the activities of traders in an electronic dark world where transactions are extremely opaque, not visible and not transparent. These are people trading transactions who do not want to be tracked,” Emefiele told members of the National Assembly when he was invited to clear the air about the ban.

Meanwhile, The African Blockchain 2022 report revealed that the growth of blockchain and cryptocurrency technology on the continent saw African blockchain startups raise $474 million.

The report explained that Nigeria was the leading country in terms of the number of blockchain startups funded, followed by South Africa, Seychelles and Kenya.

It explained that while Nigeria had the most deals on the continent during 2022, it only accounted for a 3.4 percent share of all African blockchain financing with an average deal size of $1.25 million.

“Blockchain venture funding to Nigeria was $15.99 million. It was $208.04 million in the Seychelles; $176.65 million in South Africa; $37.50 million in Liberia; $25.79 million in Kenya; $8 million in Cameroon; and $2 million in Ghana,” revealed the report published by blockchain venture capital firm CV VC AG in partnership with Standard Bank.