Bitcoin, from banished to darling? – What if Africa became THE Bitcoin continent? If it isn’t already, by the way. Nigeria finally seems to be moving in this direction, after having banned Bitcoin earlier in the year. In front their inability to democratize their MNBC, the e-nairawouldn’t Bitcoin ultimately be the perfect alternative?
Bitcoin legal, hope could be reborn in Nigeria?
Tool par excellence for banking, Bitcoin is already used more and more frequently as a remittance system. That is to say transfer of value between expatriates and their families back home. Indeed, compared to traditional systems, there is no comparison. Typically transfers are instant instead of taking a week. In addition, it avoids exorbitant fees charged by intermediaries such as Western Union.
Now it might even be even easier for Nigeriens. Indeed, Punch, a local newspaper, has just report a sensational announcement from the Chairman of the House of Representatives Committee on the Capital Markets, Babangida Ibrahim. The motion would amend the Investments and Securities Act 2007 to recognize Bitcoin as legal for investments of any kind.
While the Nigeria is now trying to make cash disappear to highlight his e-naira, the all-digital era seems to be here. And bitcoin could finally have a place there. The law under consideration could indeed authorize the use of cryptocurrencies anywhere in the country. The objective is also to finally establish a regulation for these new monetary UFOs by reforming the capital markets.
Nigeria, engine of crypto development in Africa?
“We need an efficient and dynamic market in Nigeria. To do so, we must update our practices. […] [Les cryptomonnaies] have no borders. You can stay in Nigeria and invest in the US, Canada, anywhere. »
Babangida Ibrahim, chairman of the capital market regulation committee
Ibrahim recalls that when cryptocurrencies were banned in Nigeria, they realized that a majority of Bitcoin users actually had no bank account. They were therefore not even under the jurisdiction of the Central Bank of Nigeria (CBN). Bitcoin was banned but still used by more than 30% of the population. Nigeria’s position on cryptocurrencies, and Bitcoin more specifically, has always been ambiguous.
“Since they don’t use a bank account, there’s no way to verify their activities. It is not that their activity is illegal, but quite simply that there is no regulation for this type of practice. »
The objective of this new law is clear, to start regulating the capital market in Nigeria, including derivatives, commodities and of course cryptocurrencies. In order to clarify the position of cryptos within the Nigerien financial markets.
“It’s not about lifting the ban [du ban de Bitcoin] but to examine the legality. »
In Africa, many Nigeriens do not have a bank account because their income is simply not of interest to the banks. Bitcoin offers them an uncensorable means of access to savings and money transfer. Legalization by an African country could be the driving force behind a surge of adoption in the heart of Africa. Nevertheless, the road will still be long because Nigeria seems rather to want to regain control of a monetary power that seems to be gradually slipping away from it because of Bitcoin.
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