By Ogaga Ariemu
The Central Bank of Nigeria’s (CBN), recent restrictions on cryptocurrency has sparked several debates amongst Nigerians with vary viewpoints, however the Apex bank’s action has become a major blow to Nigeria’s Digital Economy.
This is so because Cryptocurrencies operate on the blockchain technology which is a growing list of records called blocks, linked using cryptography. Each block contains a cryptographic hash (a string of numbers and letters) of the previous block, a timestamp, and transaction data.
The CBN has cited reasons bothering on lack of regulation in the system, amongst other issues as its main reason for banning its use in Nigeria. However, this is contrary to the objective of the National Digital Economy Policy and Strateg (NDEPS) and ultimately Digital Nigeria.
The policy which is championed by the Ministry of Communications and Digital Economy provides the National Information Technology Development Agency (NITDA), with a mandate of developing a strategy for the adoption, implementation and possible regulation for the blockchain industry in Nigeria.
NITDA which is the apex regulator for Information Technology in Nigeria, has the responsibility of creating frameworks for the planning, research, development, standardization, application, monitoring, evaluation and regulation of all Technology practices in Nigeria.
Earlier in November, 2020, the agency held its Stakeholder Engagement for the Review of the National Blockchain Adoption Strategy. The Director General of NITDA, Mallam Kashifu Abdullahi mentioned at the conference that government is interested in harnessing the potentials of the Blockchain industry.
He mentioned that Nigeria at 2030 will begin to make an average of N10 billion if we take it seriously. He said: “Looking at our youthful population, which is mainly digitally native and our strategic position in Africa, we are looking at how we can get at least around $10 billion from this by the year 2030, and this is doable looking at our strategic and huge payment and financial services sector.
“Nigeria is already one of the hottest places when it comes to tapping from this. We are coming up with a strategy that will help Nigeria to capture value from the financial services from land administration, from education, and from healthcare because Blockchain is going to play a key role in terms of breaking and tracing products and services.”
This progress was welcome by very many Nigerians at the time as people saw the blockchain space as the best way of diversifying the economy from mono-economy, however the CBN’s recent move seems to be the cog in wheel of NITDA’s blockchain policy.
Despite the country standing as the second largest market for cryptocurrency worldwide, the Apex bank has insisted continuing the regulatory restriction on cryptocurrency trading in Nigeria.