The Nigerian government has advocated blockchain technology and cryptocurrencies like BTC. Relevant authorities have introduced a nationwide policy on blockchain technology, despite the latter remaining hidden. According to the Federal Commission for the Digital Economy (FMCDE), a PwC-curated report serves as the basis for this development. The report predicts that once blockchain adoption becomes widespread, it will contribute $1.76 trillion to the GDP by 2030. That roughly translates to 1.4% of the global GDP.
The development comes after the Government of Nigeria convened for a meeting on May 3, 2024. It adheres to society’s digital development in support of emerging technologies. It is expected to facilitate data sharing, transactions, and value exchange securely. Individuals, companies, and the government will all be included. Needless to say, the implementation is assumed to have a positive impact on the region’s private and public sectors.
Nigeria is further betting on implementing distributed ledgers to facilitate its economy’s development. The Nigerian government’s blockchain policy includes a few additional elements. This includes forming a blockchain consortium, strengthening the framework of regulations and law, establishing incentive programs, and promoting digital identity. The model has laid out plans to raise awareness about blockchain technology and increase digital literacy.
Any implementation of blockchain technology will go through an established national blockchain test room. Interestingly, Nigeria still prohibits cryptocurrency transactions. The official statement does not shed light on the government’s plans to lift the ban. Nevertheless, authorities are hell-bent on boosting their economy with blockchain technology.
The Central Bank of Nigeria, NITDA, the National Universities Commission, the Nigerian Communications Commission, and the Nigerian Securities & Exchange Commission will draft related frameworks.
The implementation of blockchain technology in Nigeria has come at a crucial time. This is when the global crypto market gains momentum. Although there is no mention of lifting the ban on cryptos, it remains a possibility. Cryptocurrencies do have benefits that help an economy despite being volatile and uncertain.
That said, BTC and ETH are currently testing a new resistance. Bitcoin has navigated its way to a level above $59,000. Ether is below $3,000, but it continues to trigger bullish sentiments with upswings. BTC is listed at $59,396.16 at the time of writing this article. ETH is exchanging hands at $2,977.02 right now.
The resurgence in the crypto market has created speculation that a new ATH for several tokens is on the way. BTC, for example, is anticipated to exceed $100,000 by the end of the current year. The efficacy of the national blockchain policy in Nigeria is yet to be determined.
