The Nigerian exchange plans to launch a blockchain-enabled exchange platform next year to deepen trading and attract young investors to the market.
This movement is Rule Leading the trading of digital assets by the Nigerian Securities and Exchange Commission, there is growing interest in companies and policy makers across the continent, including Kenya and South Africa, to adopt distributed ledger technology.
In an interview, Temi Popula, CEO of the Nigerian Exchange, said the exchange aims to introduce blockchain technology into the settlement of capital market transactions. “For many young and future Nigerians, it’s the kind of technology they adopt and we want to see how we can deploy it to grow the market,” Temi said. Told.
The plan is triggered by the defeat of the crypto market following the collapse of the Terra blockchain in May. Bitcoin has plummeted by more than 50% since it hit a record high last November.
According to the Bitcoin market Paxful, young Nigerians make up the largest volume of cryptocurrency trading outside the United States, but they largely ignore local stock exchanges. Nigerians traded $ 185 million of Bitcoin on the platform during the first three months of this year, accounting for a quarter of the Paxful period trading.
According to Popoola, the Nigerian stock exchange will partner with a technology company to obtain regulatory approval before its launch in 2023. “Blockchain technology can facilitate different parts of the capital markets, whether it’s the creation of commodities or the facilitation of exchanges for trading financial assets,” he added.
Digitizing transactions not only helps attract young buyers looking for a variety of products, but also helps them quickly and easily access the market, Popula said. The stock exchange’s first full electronic equity offering, issued by MTN’s Nigerian unit last year, was 1.2x oversubscribed, with 85% of investors under the age of 40.
“It’s almost impossible to think of blockchain without cryptocurrencies, so if hiring doesn’t match the central bank’s position, there may be investor skepticism,” Lagos Stears said. Technology policy analyst Gbemisola Alonge said on the phone. In addition to blockchain, she said listed companies should be able to provide returns to attract target investors.
last yearThe central bank has ordered commercial lenders to suspend transactions or operations in cryptocurrencies because of threats to the financial system. The Nigerian SEC said at the time that it was aiming to protect investors and make the market more transparent.
Blockchain technology is widespread throughout the continent.South African authorities attractive We will work with the fintech industry to enable distributed ledger technology to be incorporated into financial markets. In Kenya, lenders are seeking approval to introduce technology into their payments to reduce the occurrence of bad debts. Nigeria introduced the digital currency eNaira last year to promote financial inclusion in Africa’s most populous countries, where one-third of the population does not have access to financial services.