Nigeria approves guidelines to build a blockchain-powered economy
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The executive branch of the Nigerian government approved the country’s national blockchain policy, according to a recent press release. The African country expects to create a blockchain-powered economy by implementing the policy and capitalizing on the technology’s accelerating growth.
Blockchain can significantly boost global GDP growth
The Federal Government of Nigeria approved the implementation of the National Blockchain Policy, hoping to tackle the opportunities presented by the rapid growth of the blockchain industry. The policy was given the go-ahead by the Federal Executive Council in Abuja on Wednesday, May 3.
In the press release announcing the approval, the country’s Federal Ministry of Communications and Digital Economy (FMCDE) cited data from a PricewaterhouseCoopers (PwC) report. The report expects the burgeoning blockchain technology to contribute up to $1.76 trillion to global gross domestic product (GDP) by 2030, representing around 1.4% of total global GDP.
FMCDE said in the announcement that it has developed the National Blockchain Policy on behalf of the Federal Government of Nigeria “in line with the 7th pillar of NDEPS, which focuses on digital society and emerging technologies.”
The main goal of the policy is to build a blockchain-powered economy that serves as a foundation for “secure transactions, data sharing and value exchange between people, businesses and governments, thereby increasing innovation, trust, growth and prosperity for all,” FMCDE added in the release . It also said it expects the policy to have a positive impact on both the public and private sectors in the nation.
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Nigeria’s ever-growing interest in blockchain technology
The national blockchain policy’s approval is not surprising, given Nigeria’s deep interest in crypto and blockchain technologies. In 2020, Nigeria published a draft blockchain adoption strategy, saying blockchain and distributed ledger technologies (DLT) could streamline the development of the country’s digital economy.
The West African nation has also been one of the leaders in global central bank digital currency (CBDC), with the introduction of eNaira increasing by 63% since its launch in October 2021. Many global leaders have increased their CBDC efforts over the past year, including Japan, India and Brazil.
Earlier this month, Nigeria’s Securities and Exchange Commission (SEC) said it may approve tokenized coin offerings on licensed digital exchanges to drive market participation in the country. However, the Securities and Exchange Commission is currently considering allowing offerings of coins backed by assets such as real estate and equity, but not crypto.
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About the author
Tim Fries is the co-founder of The Tokenist. He has a B. Sc. in mechanical engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate in the investment team at RW Baird’s US Private Equity division and is also a co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
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