Nigeria seeks to Legalise Bitcoin and Cryptocurrency Use
- Rudolph Harmon
- December 19, 2022
- Defi, Bitcoin
- 0 Comments
Nigeria is seeking to reverse its attitude toward the cryptocurrency business by pushing a bill to allow the use of bitcoin and other cryptocurrencies. Nigeria’s House of Representatives Committee on Capital Markets and Institutions chairman, Babangida Ibrahim, reportedly spoke to a local newspaper about the proposed changes to the “Investment and Securities Act 2007” that would establish Bitcoin as a legitimate form of investment capital.
Nigeria’s Securities and Exchange Commission will soon be able to accept cryptocurrencies and other digital monies as investment capital after new legislation is passed into law. Ibrahim made it clear in his remark that keeping up with international best practices is crucial for the success of the country’s capital market.
This new trend emerged almost two years after the Nigerian central bank barred banks from serving crypto exchanges. The CBN order also instructed financial institutions to terminate the accounts of anybody found to be engaging in cryptocurrency trading.
Despite the government’s efforts, Nigeria has become a leading Bitcoin market. According to a new study by the international research company Morning Consult, the percentage of adult crypto traders who trade at least once each month is the highest in the world at 50%.
In the face of a depreciating Naira, many Nigerians are turning to Bitcoin and stablecoins to preserve their money. In more recent times, the government of Nigeria has collaborated with the cryptocurrency exchange Binance to create a digital economic zone for blockchain and cryptocurrency-related enterprises.
Nigerian Efforts Toward a Cashless Economy
More than 200 million people are anticipated to be impacted by Nigeria’s decision to restrict cash withdrawals a year after the country’s central bank launched its own digital currency, the eNaira.
Cash withdrawals from ATMs are now capped at $1,123 per week for corporations and $225 per week for individuals, according to new regulations implemented by the Central Bank of Nigeria.
The African country’s cashless strategy also restricts access to larger denominations of currency, including $45 in daily withdrawals from ATMs that only dispense $0.45 notes and below. Larger withdrawals may still be possible in certain cases but will incur a processing charge of 5% to 10%.