On February 5, 2021, the Central Bank of Nigeria (CBN) ordered the identification of individuals and platforms engaged in cryptocurrency transactions with the aim of suspending their transactions and facilitation.
CBN’s stance was justified as the risks increased and the need to control what appeared to be an off-radar path to escape financial regulation through cryptocurrency trading was recognized. However, this decision has sparked anger, controversy, and some setbacks against the fast-growing financial technology sector, which is said to have attracted more than $ 600 million in foreign investment between 2014 and 2019. rice field.
Recognized as an attempt to ease the crackdown, e-Naira was launched as the Central Bank Digital Currency (CBDC) on October 25, 2021, issued and regulated by top institutions and fixed to the value of Naira. rice field. The CBDC is not a cryptocurrency, but is best described as a crypto or digital asset. Therefore, within a year, CBN curtailed the country’s bustling cryptocurrency involvement and became the first African country to own the country’s digital currency.
On May 11, 2022, the Securities and Exchange Commission (SEC) published rules on the provision and storage of digital asset issuance on its website. The 54-page document targets sponsors, issuers, national and international platforms that facilitate digital asset transactions, including cryptocurrencies. Seemingly a coincidence, these new guidelines are for Cristalina Georgieva, Managing Director of the International Monetary Fund (IMF), to explore the digital future of each country and connect payment systems to the public. It was announced shortly after urging people to adopt a digital platform. She emphasized that despite the risk of fragmentation, it is worth exploring ideas for platforms that connect different forms of money for people of different categories in all countries.
Companies are gradually tending to hold cryptocurrencies as assets, and even if they declare the same on their balance sheets, the idea is leaning towards more widespread acceptance, despite sanctions that discourage full adoption. It is clear that there is.
For Nigeria, having a very “cryptocurrency and vibrant” youth population means that supporters of liquid currencies will get fewer responders. Therefore, organizations must have a predisposition while acquiring the opportunities and knowledge necessary to fully profit from the future of digital assets.
Dr. Ohaegbu, Senior Consultant and Practice Lead at H. Pierson Associates Limited, wrote from Lagos.