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Nigeria to kick start its CBDC pilot in October

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As the world takes on the digitalization wave, Nigeria revealed that it was getting on the journey.

Central bank digital currency [CBDC] rose to fame after China took a plunge into developing a digital version of its fiat currency. While China is way ahead in the game, several other governments have started to catch up. The Chinese government has moved past its research and development phase and has already kick-started its distribution stage. Alerted by this rapid development, other countries have begun developing their own digital assets.

Nigeria hoped on to the bandwagon and even went on to announce the launch of its forthcoming CBDC pilot scheme.

Nigeria takes a leap into digitalization

In a recent webinar, the Central Bank of Nigeria [CBN] pointed out that it would roll out the pilot program for the region’s CBDC project, ‘”GIANT,” on 1 October 2021.

The project was reportedly in the works since 2017 and operated on an open-source blockchain called Hyperledger Fabric. This project has been focusing on the development of blockchain-based solutions, applications as well as products.

Rakiya Mohammed, the information technology director for the Nigerian central bank that Nigeria took this plunge into the CBDC game as 80 percent of central banks across the globe were on the verge of launching or developing a CBDC. Nigeria did not want to lag or be left behind in this move towards digitalization, the bank noted.

In addition to this, the central bank hopes to garner macro-management as well as growth. Easing the process of cross-bored trading is also an added advantage.

While the country continues to embrace the CBDC side, recent comments from the government about cryptocurrencies have led to people thinking that it is anti-crypto. Despite this, crypto is being widely used across several industries in the region. Most recently a school in the country revealed that it would accept crypto for tuition fees.

Nigerian school embraces crypto while regulatory clarity remains hazy

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A prominent Nigerian school in the city of Kano revealed that would accept fees in cryptocurrency.

Several countries across the globe have started to embrace cryptocurrencies, particularly after the most recent crypto rally. The latest slump in the crypto market did not diminish the demand for these assets as platforms throughout several industries have been onboarding crypto into their systems. Despite the growth of the crypto-verse, the regulations surrounding it still remain unclear, and Nigerians have been a victim of the same.

Keeping all this aside, Kano’s New Oxford Science Academy was all set to include crypto into its fee structure.

Nigerian crypto-friendly school

As per a news portal, the New Oxford Science Academy would be accepting tuition fees in cryptocurrency. Elaborating on the same, the school principal, Sabi’u Musa Haruna, reportedly made the arrangement only after reviewing it with the parents. Elaborating on the adoption and popularity of crypto, the principal added,

“We’ve decided to accept cryptocurrency as school fees because the world today is tilting towards the system. We believe one-day digital money will gain more acceptance than paper money.”

Furthermore, the principal did not reveal what cryptocurrencies the school had started to accept. Nevertheless, with Bitcoin being highly popular in the country, it is speculated that the Nigerian school could be accepting BTC for fees.

Additionally, Haruna pointed out the progress that other countries like El Salvador and Tanzania were making in terms of crypto adoption.

The crypto scene in Nigeria has been quite uncertain, specifically after the Central Bank of Nigeria declared that it had banned financial institutions from aiding services to cryptocurrency platforms. However, while this took place in February 2021, the country’s vice president, Yemi Osinbajo, delivered a crypto-positive speech in May. He stated,

“There is no question that blockchain technology generally, and cryptocurrencies, in particular, will in the coming years, challenge traditional banking, including reserve banking, in ways that we cannot yet imagine. We need to be prepared for that seismic shift, and it may come sooner than later.”

Nigeria’s Popular Hotel Makes Room For Bitcoin [BTC]

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While some countries, like Turkey, are enacting laws to curb the use of Bitcoin [BTC] for payment, others, like Nigeria,  seem to be embracing the king coin.

Bitcoin has undoubtedly gone places over the last couple of months. The cryptocurrencies landed a spot in an array of prominent platforms across the globe. From Miami’s nightclub to Nigeria’s luxury hotel, Bitcoin is undoubtedly on a roll while its price figures out the road to recovery from its recent downfall.

Nigeria’s luxury hotel, George Residence had jumped onto the Bitcoin bandwagon by accepting the king coin for payments.

Nigeria Continues To Embrace BTC

As per a local news portal, the CEO of George Residence, Yanju George had announced its support for BTC by accepting it as payment. This would reportedly make the hotel the first in the country that accepts Bitcoin. The hotel in Lagos, Nigeria is all set to receive payments in BTC starting this weekend.

Furthermore, Africa’s prominent crypto brokerage platform, Coinvest Africa would aid the hotel in accepting BTC payments.

The inflation issue in Nigeria is no news to anyone. Keeping in mind the country’s inflation rate, the CEO of George Residence revealed that the hotel intended to support BTC and make the cryptocurrency its “primary reserve asset” in order to hedge against the fiat inflation in the region. Elaborating on the same, George added,

‘‘We have allocated around 50% of our cash reserves to Bitcoin…We hope to increase that as time goes on. Bitcoin is the currency of the future and it is only right that we are strongly positioned so we do not get left behind.”

While BTC is currently priced at $54,566, the CEO pointed out that the hotel expects to provide the guests a “faster and more secure way to enjoy” the comfort that George Residence grants.

Even though rumors pertaining to the ban of crypto in the country had surfaced in the past, the governor of the Central Bank of Nigeria [CBN] affirmed that the country would embrace crypto as Nigerians had to be prepared for the “seismic shift, and it may come sooner than later.”

Nigeria’s VP Delivers Crypto Positive Speech Amidst Rumors Of A Ban

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Nigeria seems to be rendering a positive notion towards the cryptocurrency industry, amidst the current bull run. While the governor of the Central Bank of Nigeria [CBN], recently classified cryptocurrencies as illegitimate, the latest news came as a ray of hope for crypto lovers of the country.

The cryptocurrency industry had to fight hard to shun off its association with the dark web. Despite, the noteworthy growth of Bitcoin and the altcoins, the higher-ups from several countries continued to diss the digital asset industry. However, individuals across the globe have become more accepting of Bitcoin as well as other currencies. Nigeria’s vice president, Yemi Osinbajo is substantial proof of the same.

Nigeria’s VP Believes Crypto Could Challenge Current Financial System

Speaking at the Bankers’ Committee Economic Summit that took place on Friday, the vice president pointed out that there was no doubt about the potentials the blockchain and the crypto industry would entail in the future. Similar to other nations, Nigeria was seen preparing for the inevitable change that the world would be coming across in terms of digitalization. He added,

“There is no question that blockchain technology generally, and cryptocurrencies, in particular, will in the coming years, challenge traditional banking, including reserve banking, in ways that we cannot yet imagine. We need to be prepared for that seismic shift, and it may come sooner than later.”

Osinbajo seemed to be serious about inducing crypto into the country as he elaborated on the regulatory part of the industry.

Every exciting development would require “prudence and care” especially during the adoption stage, he suggested. The vice president further stressed the fact that the government was required to act with knowledge as opposed to fear.

The vice president further said,

“We must ensure that we are in a position to benefit and in a position to prevent any of the adverse side effects, or any of the possible, even criminal, acts that may arise in consequence of adopting or taking any of these options.”

Furthermore, Osinbajo addressed the decentralized finance aka DeFi wing as well. Speaking about the same he suggested that the services that DeFi offers could challenge traditional finance.

Nigeria Takes A U-Turn By Ceasing Banks From Rendering Services To Crypto Platforms

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The cryptocurrency industry is currently valued at a high of $1.18 trillion. While governments have been steering towards the industry, Nigeria seems to be moving away. The country had previously recorded increased crypto activity, which led to several platforms venturing into its markets. But, the latest decision by the Nigerian government wasn’t very favorable for the crypto-verse.

Nigeria’s Latest Move Causes Unrest In The Crypto-Verse

In a recent letter, the Central Bank of Nigeria revealed that all the financial institutions like banks in the country were to close all the accounts that had a history in carrying out cryptocurrency transactions, at the earliest. The letter read,

“Accordingly, all DMBs, NBFIs, and OFIs are directed to identify persons and/or entities transacting in or operating cryptocurrency [sic] exchanges within their systems and ensure that such accounts are closed immediately. Please note that breaches of this directive will attract severe regulatory sanctions.”

Nigeria

While Binance recently rolled out a platform exclusively for the citizens of Nigerians, the exchange decided to reciprocate to the latest news by suspending Nigerian naira [NGN] deposits. In a recent blog post, Binance announced that all the deposit services of NGC payment partners on the exchange would be temporarily suspended starting from 5 February 2021. Binance revealed that it was looking into the matter and would lift this temporary suspension as soon as it receives clarity on the matter.

Changpeng Zhao aka CZ, the CEO of Binance also commented on the same. He tweeted,

“Received notice from our channel partners that NGN deposits and withdrawals will be affected. Still confirming details on when/how. Please withdraw your NGN as early as possible to avoid potential channel issues. Will share more details as they become available.”

Just when the entire crypto market was seen on a rise, Nigeria’s latest restriction could curb the benefits that its citizens could bag.

Nigeria To Formulate New Framework For Crypto; Binance Nigeria Goes Live

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As COVID-19 restrained the movement of mankind. The world realized the importance of digitalization. Nigeria was taking the whole connotation quite seriously and was seen spearheading the adoption of crypto in the country. The latest news from the African country revealed that it was formulating new laws to stimulate the adoption of crypto.

Nigeria To Spearhead Crypto Adoption

Several governments seemed to have become increasingly accepting of cryptocurrency post the COVID-19 frenzy. Nigeria seems to be jumping on the bandwagon. A Nigerian news portal, Business Day recently published an article revealing that the Securities and Exchange Commission [SEC] of Nigeria had been closely working with the Ministry of Finance. It was further reported that the agency and the Ministry were working together in order to formulate regulations for crypto as well as blockchain.

Several countries across the globe have put into place regulations to keep crypto activities in check. This is in light of the increase in value and the adoption of crypto. The efforts of the Nigerian SEC to regulate crypto in the country go way back. The Nigerian SEC recently categorized cryptocurrencies as securities. Nigeria is Africa’s largest economy, ranking eighth in the Cryptodoption  Index for the year 2019-2020.

While blockchain technology has already worked its charm on governments across the globe, Nigerian officials revealed that they were hoping to generate a whopping $10 billion in revenue by 2030 via new technology.

Binance Steers Into Nigeria

Malta-based cryptocurrency exchange Binance has been making news following the record-breaking volume it’s recording. While the world’s largest exchange has been stepping into almost every country on planet earth, Nigeria was the latest choice of Binance. In a recent tweet, the exchange alerted its users that the “BinanceNigeria” Homepage was live. The tweet read,

Crypto has been a savior to many. While it is time and again proven that economically oppressed countries have been seeking assistance via crypto, Nigeria seems to be walking on the same road. Nigeria has been struggling with violent civil unrest and disease. The increased adoption of crypto in the country is substantial proof that its citizens are driving towards the mass adoption of crypto.

Nigerian SEC Categorizes Crypto Assets As Securities

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Cryptocurrencies appear to have found substantial assistance and shelter in poor and economically oppressed countries, as opposed to developed countries. Venezuela, a country whose economy has collapsed, has made news in the crypto-verse, particularly in view of its wide crypto-acceptance rate. Nigeria appears to be following suit as the country’s regulator has revealed support for digital assets.

Cryptocurrencies Fall Under The Purview Of Nigerian SEC

The Nigerian Securities and Exchange Commission (SEC) shared a declaration entitled ‘Statement on Digital Assets and their Classification and Treatment’ highlighting the status of cryptocurrencies in the country. While it was made clear that the regulatory body had no intention of hindering innovation, the importance of engaging in ethical practices for an effective market was set out in the statement. The SEC has revealed that digital assets would be regulated by keeping in mind the safety, deepening of the market and the production of solutions for quandaries.

While the developers of several cryptocurrencies have tried to prove that cryptocurrencies cannot be classified as securities, the Nigerian SEC has strongly argued that ‘virtual crypto assets are securities, unless otherwise proven.’ However, the Commission has given individuals the opportunity to demonstrate how their assets are not securities. Detailed SEC,

“[…]where the finding of the Commission is that the virtual assets are indeed securities (not structured to be exclusively offered through crowdfunding portals or other exempt methods), then the issuer or sponsor must register the digital assets.”

In addition, the registration process was also mentioned in the declaration where the initial assessment of the evidence followed by ‘filing for proper registration, either directly by the issuer or the sponsor, or where the burden of proof is not satisfied.’

The Commission noted that any platform or person involved in cryptocurrency or blockchain-related activities would fall within the competence of the SEC. This also included Digital Assets Token Offering (DATOs), Initial Coin Offerings (ICOs), Security Token ICOs.

Additionally, as for foreign issuers, the SEC mandated the establishment of a branch office in the country. The statement detailed,

“The Commission may require Foreign or non-residential issuers or sponsors to establish a branch office within Nigeria. However foreign issuers or sponsors will be recognized by the Commission where a reciprocal agreement exists between Nigeria and the country of the foreign issuer or sponsor.”

Nigeria Records Largest Interest In Bitcoin Activity Worldwide Since April

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The largest economy in Africa, Nigeria, is currently topping the charts in recorded Bitcoin activity and interest worldwide since April. The oil-rich western African nation leads in traffic and activity recorded on the site, according to a recent report by crypto wallet Blockchain.com.

Nigeria also registers the highest Bitcoin trading activity in Africa. In addition, the nation is one of the world’s fastest rising cryptocurrency markets.  Nigerians are steadily embracing crypto mainly because it serves as a cheaper alternative of transferring money.

Nigeria saw substantial increase in Bitcoin activity

Blockchain.com reveals that there has been at least 60 percent hike in Bitcoin activity on the site in Nigeria. And since April, they have also recorded a significant influx of Bitcoin activities on the firm’s wallet. In addition, Nigeria also leads the world in search engine activity related to BTC according to trends in Google. These statistics show that Nigerians are moving rapidly in their day-to-day life to digital transactions as their passion for crypto continues to grow.

Most Nigerians use Bitcoin for a variety of reasons, including paying for goods and services. Bitcoin also serves as an investment option, owing to its growing financial market value. Since Bitcoin accessibility and decentralized nature works in favor of the majority of unbanked Nigerians, they still use the crypto as a reserve payment option even to process cross-border payments.

Cryptocurrency adoption on the rise in Africa

The country is closely followed by other nations like South Africa, Ghana, Austria, and even Switzerland as the top Five nations that lead in Bitcoin Google searches. Notably, although Nigeria topped the charts on Blockchain.com back in April, Peru was the most active nation throughout July. India and Indonesia closely followed Peru as the top three nations in wallet transactions in July.

Furthermore, there has been a steady rise in crypto transactions done on the African continent. Nations like Kenya, Ghana, and South Africa have recorded an increased influx of Bitcoin transactions. It is now evident that more people are developing a liking for crypto, hence the increased adoption recently. 

New African Bitcoin Documentary to Stream on Amazon Prime

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The demand for Bitcoin is still rising across Africa in spite of the extensive economic crisis according to data by P2P exchanges Paxful and LocalBitcoins. Beginning this Friday, a new African Bitcoin documentary will begin streaming on Amazon Prime showing how Bitcoin is revolutionizing the continent.

Well, it turns out that the African continent is a perfect test centre for Bitcoin after all, as per the new Amazon Prime Bitcoin documentary and its accompanying report. The documentary was created by South African filmmaker Tamarin Gerriety, in partnership with cryptocurrency exchange firm Luno for award-winning production house  Documinute, based in South Africa.

New African Bitcoin Documentary to begin on Friday

The new documentary will feature big industry players such as the SatoshiCenter founder r Alakanani Itireleng of Botswana and South Africa-based Monero creator Riccardo Spagni. The documentary shows the varying lifestyles of the two industry players, from Alakanani’s farm and Spagni’s luxurious urban rooftop.

In Alakanani’s story, Bitcoin arrived too late for her son. Her son passed on before she could raise funds to cater for his costly surgery. However sad, it was through trying to save his son’s Paco life that Alakanani learnt about Bitcoin. Whatever she assimilated about the flagship digital currency delighted her- and like many people scattered around the world, she began her Bitcoin evangelism journey.

In her country, Alakanani is now referred to as  Botswana’s Bitcoin Lady. After learning about Bitcoin, she founded the nonprofit SatoshiCenter where she educates other Africans on how to use Bitcoin and how to transform their lives using the flagship cryptocurrency. Alakanani is one of the inspirational African figures featured in the new Amazon Prime Bitcoin documentary dubbed: Banking on Africa: The Bitcoin Revolution.

Kenya, South Africa, Nigeria and Ghana fastest growing Bitcoin communities in Africa

Currently, it seems like Kenya, South Africa, Nigeria and Ghana are the fastest developing Bitcoin communities on the continent. As per a report by market research company  DataReportal back in January, approximately 11 percent and 13 percent of Nigerian and South African internet users under the age of 64 respectively; own digital currencies in contrast with the 7% worldwide average. 

In conclusion, the new African Bitcoin Documentary is accompanied by an in-depth report on the African Bitcoin ecosystem. The study was run by Arcane Research Agency and will be released together with the documentary.