The government of Nigeria is preparing to pass a bill to “recognize cryptocurrency and other digital funds as capital for investment”
The Nigerian government will reportedly soon pass a law recognising the usage of Bitcoin and other altcoins to keep up with “global practices” in capital markets.
For the Nigerian SEC to recognise cryptocurrency and other digital funds, the government has to sign the Investments and Securities Act 2007 (Amendment) Bill into law. The bill will clarify the regulatory roles of the Central Bank of Nigeria and SEC regarding digital currencies.
The move would be a U-turn from the previous national policies. Back in 2021, Nigeria banned all crypto activity, mandating banks to shutter the accounts of any individuals or entities engaged in crypto trading.
At the same time, this didn’t influence the rates of crypto adoption within the country (35%), as “the CBN discovered that most of these investors don’t even use local accounts,” says the House of Representatives Committee on Capital Markets Chairman Babangida Ibrahim.
Instead of the various decentralised cryptocurrencies, the country introduced the Central Bank Digital Currency (CBDC). However, e-naira has witnessed less than 0.5% adoption.