Crypto framework set to be introduced by Nigerian authorities in a bid to drive more crypto adoption. Nigeria is truly a giant in Africa as it has the largest economy and also is a force to be reckoned with in the crypto sector since its inception. Reports has it that Nigerian authority through its Ministry of Finance is currently in talks with securities regulators over a new crypto and blockchain framework to be developed. This is believed to quicken the adoption of crypto in the country.
Administrators are taking this move further by conducting talks with institutions such as the SEC, also known as the Securities Exchange Commission, to ensure that the blockchain environment has a regulatory body. Talks were done between the Ministry of finance and the Abuja-based institution, published on Tuesday.
This will be a perfect opportunity for African countries to use as a template to implement in their own economies. Currently, the biggest contender for this type of framework in Uganda, which has seen wide-scale popularity for trading and investment culture. Some of the best Ugandan forex trading brokers have also encouraged further adoption as they start offering CFDs and incorporating new instruments on their platforms.
According to the publication on Tuesday, Armstrong Takang, who is the adviser to the Ministry, in his Tuesday speech in Lagos. In Nigeria, assets are considered commodities. These commodities are often controlled by Nigerian securities law after the order from the Securities Exchange Commission concerning the matter a few months ago. The SEC said during that period that their aim is to foster regulations in this sector, rather than preventing its development or adoption.
Nigeria is one of the African countries where Bitcoin is experiencing massive growth, although the country still struggles with capital controls, new protests against police brutality in the country (the Endsars movement), and devaluation. The main goal of the officials in Nigeria at the moment is to adopt blockchain. The reason for this is the expectation of a $10 billion revenue to be generated from the technology by 2030.
Crypto Framework To Drive Adoption in Africa
This move is a general phenomenon in the continent of Africa as a whole. Many countries in Africa, besides Nigeria, are quickly turning toward blockchain technology. If there is one thing that has boosted such activities in the continent is how slow it has always been for financial transactions in standard financial institutions. A survey indicated that in 2017, many countries in Africa stored their GDP in the blockchain. It is very certain that blockchain is replacing the conventional systems in Africa. The technology has the potential to promote innovation not only in Nigeria, or Africa, but the world at large.
The introduction of blockchain in Africa has promoted innovation and has created easy access to financial searches and the growing markets. It has enabled the use of cryptos for the facilitation of basic financial transactions. It provides a solution to the variation of currencies in Africa, making it possible for countries to transact with each other in one currency. This allows people to transact without needing the services of a middleman. Cryptocurrency adoption in Africa has been on the rise as countries like South Africa, Uganda, Kenya, Ghana, and many other African countries join Nigeria on the bandwagon of crypto adoption. Africa is considered one of the most promising continents for crypto adoption. According to reports, this is one of the similarities that African countries share despite their diversity. The high levels of inflation and currency volatility in Africa make it a fertile region for the adoption of crypto.
The mobile money industry in Africa has been growing fast and steady and investors worldwide acknowledge its scope. The success of mobile money (Momo) on the continent makes the struggle to get crypto into the African markets is driven by investment interest in cryptos, as blockchain technology continues to make its mark in the continent and all the countries within it.
This article is sourced from:https://blocktribune.com