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De-Fi: How Nigeria’s approval confers trust, legitimacy on Blockchain system –Experts

*Advocates of the technology have applauded the Federal Government’s recent approval of a Blockchain adoption strategy policy, describing the step as ‘a significant milestone for the Blockchain industry in Nigeria’

Alexander Davis | ConsumerConnect

Industry experts have described the Nigerian Government’s recent approval of a Blockchain adoption strategy

as a milestone that will “add clarity, trust and confidence in the [Blockchain] ecosystem” in the country.

President Muhammadu Buhari, GCFR, in a FEC Meeting in the State House, Abuja, FCT

ConsumerConnect had reported Prof. Isa Ali Pantami, Honourable Minister for Communications and Digital Economy, recently disclosed how the country’s Federal Executive Council (FEC) endorsed the Blockchain policy.

The unveiling of the adoption strategy document is expected to be fleshed up in regulatory frameworks and implemented by the Nigerian Communications Commission (NCC), Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), among others.

The experts applauded the government’s move and said the FEC approval would lend “some form of legitimacy” to a technology that many Nigerians still only associate with cryptocurrency.

The advocates of the technology lauded the Nigerian Government’s approval of a Blockchain adoption policy, describing the move as “a significant milestone for the Blockchain industry in Nigeria.”

The experts also noted that the unveiling of the strategy document by the government helps to lend “some form of legitimacy” to a technology that several people still confuse with cryptocurrency, reports Bitcoin News.

It was gathered the official approval was sequel to earlier widespread consultations with some 56 Nigerian institutions and personalities. However, despite the positive President Muhammadu Buhari administration has taken, some in Nigeria’s crypto space have insisted that this will not result in the Central Bank of Nigeria reversing its position on cryptocurrencies in the country’s financial ecosystem.

Speaking on the development, Rume Ophi, Executive Secretary of the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), however, stated that the CBN would eventually, change its stance and start regulating cryptocurrencies just as countries like Saudi Arabia have done.

Ophi reportedly hinted that the incoming administration of Asiwaju Bola Ahmed Tinubu might result in changed fortunes for Nigeria’s cryptocurrency industry in the West African country.

He also said: “A few players in the space think the policy is just an academic exercise, but I think with time there will be a balance just like the Markets in Crypto Asset…  approved by the European parliament.

“The new [Bola Tinubu] administration might just do something different from the outgoing administration.”

Industry players hail Nigeria’s ‘all-encompassing approach’

Likewise, Nadeem Anjarwalla, Binance’s Director for West and East Africa, said the approval of the adoption strategy means that Nigeria is “positioning itself as a nation significantly ahead of the curve – supporting further blockchain innovation, user protection, security and economic competitiveness in the long term.”

Anjarwalla said that the approved adoption strategy would also “add clarity, trust and confidence in the ecosystem,” which is still in its very early stages of development.

Anjarwalla, therefore, commended what she described as the Nigerian government’s “all-encompassing approach” which is laid out in the policy document.

Significance of Blockchain technology

As stated in the National Blockchain Adoption Strategy, the Federal Government believes the unveiling of the strategy document will likely bolster efforts at “creating and fostering an efficient, safe, and economically viable digital Nigeria using Blockchain technology.” The Nigerian Government noted that it is also confident the Blockchain system would not only facilitate the development of Nigeria’s digital economy but will also “enable citizens to have more confidence in digital platforms.”

The strategy document as well hinted though Blockchain is said to pose challenges to governments, Nigeria’s focus will be “on the application of Blockchain to resolve business and governance process inefficiencies.”

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