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FEATURE Crypto Weekly
Nigeria is Realizing the Potential of Cryptocurrency A
54-page document released last month by Nigeria's Securities and Exchange Commission (SEC) outlined new regulations regarding issuance, platforms, and custody of digital assets. In a country suffering from the economic repercussions of the pandemic, the move by the SEC will legitimize cryptocurrency in Nigeria. Already 33 million people invest in cryptocurrencies in Nigeria. In light of the Central Bank of Nigeria's (CBN's) alleged outlawing of the technology entirely in 2021, the recent action taken by
June 2022 | Volume 32
the Nigerian SEC was unexpected. With this move, the state legitimizes a technology that can serve to eliminate barriers to financial inclusion in a country where 36 percent of adults are financially excluded and often do not have bank accounts. Because of the high inflation in Nigeria (currently 16 percent), it should come as no surprise that millions of Nigerians are turning to crypto to meet their daily needs. Blockchain technology is often used to hedge against inflation, but many have simply taken advantage of it for everyday
payments, sending money abroad (and receiving it instantly), and for investments. Continuing problems with the e-Naira, Nigeria's central bank's digital currency, have not improved long standing problems in the country, such as financial market access, which has led many to turn to crypto. The country is the second-largest cryptocurrency player in the world, behind only the United States, according to Bloomberg. Nigeria's appetite for crypto is as strong as ever, given the fact that the technology was essentially outlawed in the country.
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