Nigerian Central Bank Criticised Over Crypto Regulation

Summary

• Blockchain experts criticize the Central Bank of Nigeria for its 2021 ban on cryptocurrencies during the SIBAN Digital Assets Summit 2023, citing regulatory hurdles and a lack of understanding.
• Despite being the world's most crypto-aware nation, Nigeria faces challenges, including governmental fears that cryptocurrencies could destabilize the economy.
• Signs of positive change are emerging, with the National Information Technology Development Agency (NITDA) introducing a National Blockchain Policy and setting up committees to rethink blockchain regulation.

A group of Nigerian blockchain experts has recently criticized the Central Bank of Nigeria (CBN) for its 2021 decision to ban the use of cryptocurrencies in the country. 

This discussion occurred at the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN) Digital Assets Summit 2023. The experts examined the blockchain sector's challenges and brainstormed solutions to move the industry forward.

Held in Nigeria's capital, the summit discussed "The Future of Digital Assets: Regulatory Uncertainty and the Way Forward." Adedeji Owonibi, CEO of Convexity, led the charge in questioning the Central Bank's policies. He praised recent initiatives to support blockchain technology but criticized the Central Bank for failing to implement a favorable policy for the sector.

Owonibi also lauded the National Information Technology Development Agency (NITDA) for taking positive steps towards supporting blockchain technology. In May, NITDA introduced the country's first National Blockchain Policy, a move designed to protect creators, investors, and users of digital assets.

Other experts at the summit also emphasized the challenges of dealing with regulatory hurdles across various jurisdictions. They identified a key problem: the Central Bank's lack of understanding of blockchain technology, which led to the 2021 cryptocurrency ban. 

Nigeria Tops in Blockchain Awareness But Faces Challenges

Despite topping global data on blockchain awareness, Nigeria faces hurdles, primarily stemming from the government's fear that cryptocurrencies could destabilize the economy. 

A recent global survey revealed Nigeria as having the world's most cryptocurrency-aware population. An astonishing 99% of male respondents have heard of crypto. But, experts agree that regulation is crucial to ensure both security and scalability in the industry.

While Nigeria leads the world in blockchain awareness, it faces considerable challenges, primarily due to regulatory uncertainty and government apprehension. However, there are signs of positive change, especially with agencies like NITDA pushing for a more supportive regulatory environment. 

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As Nigeria continues engaging with the complex issues surrounding digital assets, many hope the government will develop balanced policies that foster growth while ensuring stability.

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