Nigeria central bank missed opportunity for blockchain regulation in 2021 — Convexity CEO

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A gaggle of Nigerian digital asset professionals took to the stage on the Stakeholders in Blockchain Know-how Affiliation of Nigeria (SIBAN)’s Digital Property Summit 2023 in Abuja, to debate the way forward for digital asset regulation in Nigeria.

Within the panel titled The Way forward for Digital Property: Regulatory Uncertainty and the Means Ahead, the group mentioned why implementing digital belongings regulation and blockchain coverage has been gradual in Nigeria.

The developmental regulation created by The Nationwide Data Know-how Improvement Company (NITDA) is a giant step towards understanding and creating a good surroundings for the blockchain and crypto trade, in response to Adedeji Owonibi, CEO of Convexity. Owonibi said that this step is what the Central Bank of Nigeria (CBN) ought to have taken again in 2021 instead of cutting ties between cryptocurrency exchange firms and local banks.

The panel discussion on the Future of Digital Assets at the SIBAN Digital Assets Summit. Source: SIBAN

Acknowledging NITDA’s strides in crafting a blockchain policy, Preye Itonyo, the deputy director of the agency’s Digital Economy Development Department, highlighted the regulatory hurdle posed by the decentralized nature of blockchain, resulting in a lack of understanding of blockchain and cryptocurrency concepts in Nigeria. He stated that this lack of understanding fueled the 2021 crypto/traditional finance ban.

In a recent global survey, Nigeria was found to be the most cryptocurrency-aware population in the world, with 90% of respondents expressing curiosity in investing in cryptocurrencies within the subsequent yr. Nonetheless, there’s a want for regulation within the trade to foster safety whereas encouraging scalability.

Associated: 99% of Nigerians are crypto aware — ConsenSys report

In response, Itonyo said that the already established blockchain coverage is Nigeria’s first step towards making certain the protection and safety of crypto traders. He additionally revealed that NITDA has arrange a steering committee to facilitate the implementation methods of the nationwide blockchain coverage. In response to Itonyo, the CBN and the Nigerian Communications Fee are committee members.

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