Policies can affect digital identity

The approval of the National Blockchain Policy in Nigeria has left the nation’s crypto community over the moon as it signals room for more development in the nation’s crypto industry. Some local experts have expressed their opinions on the implications of this new policy in Nigeria in relation to the current blockchain ecosystem in Nigeria.

The government of Nigeria approved a national blockchain policy during a meeting on 3 May 2023. A draft of the blockchain adoption strategy stated that blockchain and decentralized ledger technology would “facilitate the development of the Nigerian digital economy”. Cointelegraph reached out to the local blockchain ecosystem to get a sense of how the industry and community are accepting the policy.

Olajide Abiola, co-founder and CEO of KiaKia, a Nigerian fintech company, expressed delight at the development. Olajide said the blockchain technology policy has the potential to impact various areas of governance and policy making in Nigeria.

He went on to state that if properly harnessed, blockchain policy can help with digital identity management, creating a tamper-proof digital identity for citizens to authenticate their identity and access public services securely. With the right regulations, blockchain technology can also impact e-payments and invoicing in Nigeria, Olajide stated.

Considering that technology is yet to be incorporated into Nigerians’ daily activities, businesses can reduce costs and improve cash flow by offering secure and transparent payment options, while consumers can benefit from faster and more convenient transactions. This increased efficiency and convenience can lead to increased economic activity and growth.

The Federal Executive Council, along with the approval of the policy, instructed relevant regulatory bodies to create regulatory frameworks for the implementation of blockchain technology in various sectors of the economy.

A local blockchain expert, Barnette Akomolafe of M7pay, a crypto exchange app, also spoke about how big a milestone it is for governments to recognize the potential of blockchain technology. According to Akomolafe, by creating guidelines and regulations around blockchain, governments can encourage innovation and investment in the technology. This move could lead to economic growth and job creation for Nigerian youths.

In a statement by the Binance West & East Africa Director, Nadeem Anjarwalla, on the policy document and what it means for the Nigerian blockchain industry, he mentioned that through the approval of the National Blockchain Adoption Policy, Nigeria is positioning itself as a nation ahead of the curve thereby supporting further blockchain innovation, user protection, security and economic competitiveness in the long term.

Related: Tokens but not crypto: Nigeria SEC drafts new rules for digital assets

Anjarwalla commended the comprehensive approach taken in the reviewed policy document based on the six key initiatives, which include the establishment of Nigeria’s blockchain consortium, strengthening of the regulatory and legal framework, focus on delivery of national digital identity, promotion of blockchain digital literacy. and awareness, creation of blockchain business incentive programs and establishment of a national blockchain sandbox for proof of concepts and pilot implementation.

Nigeria is known to be one of the world’s most curious nations about cryptocurrencies

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