Nigeria Urged to Develop National Bitcoin Strategy Amid Global Crypto Surge
https://siban.org.ng/Obinna Iwuno, president of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), has called on the Nigerian government to create a comprehensive national Bitcoin strategy. With cryptocurrency adoption soaring globally, especially after the recent election of pro-crypto US President Donald Trump, Iwuno believes Nigeria is uniquely positioned to benefit from strategic involvement in digital assets like Bitcoin.
A Pro-Crypto US Administration and the Opportunity for Nigeria
The new US administration’s supportive stance on cryptocurrencies signals a potential shift in the global economic landscape, which Iwuno believes Nigeria should capitalize on. He argues that, as one of Africa’s largest economies, Nigeria has a valuable opportunity to harness the economic potential of Bitcoin and other digital assets, which could translate into substantial benefits across various sectors of the economy.
Potential Economic Benefits of a National Bitcoin Strategy
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A national Bitcoin strategy, according to Iwuno, could bring the following economic advantages to Nigeria:
1. Wealth Creation
A structured approach to cryptocurrency could help Nigerian traders benefit from an anticipated rise in cryptocurrency prices, allowing them to hedge against the impact of domestic inflation. Bitcoin’s decentralized nature and potential for high returns make it an attractive investment vehicle, especially as traditional currency values fluctuate.
2. Economic Growth and Job Creation
A thriving domestic cryptocurrency ecosystem could stimulate economic activity by attracting international investments and generating employment opportunities. A structured crypto industry would promote new business models, creating jobs in blockchain development, crypto trading, digital finance, and other tech-driven sectors.
3. Financial Inclusion
Nigeria faces significant challenges in providing financial services to underserved populations. Cryptocurrencies, particularly stablecoins pegged to the Naira, could facilitate accessible financial services, providing secure, low-cost options for remittances, savings, and other transactions for Nigeria’s unbanked citizens. This would address longstanding financial inclusion issues and promote broader economic participation.
Steps Towards a National Bitcoin Strategy
To capitalize on these opportunities, Iwuno proposes several strategic steps:
1. Regulatory Clarity
Iwuno emphasizes the importance of clear and supportive regulations. Transparent regulatory guidelines would help attract investments and protect consumers, paving the way for a secure and structured growth environment. By providing a regulatory framework that supports cryptocurrency activities, Nigeria can build a foundation for a sustainable and thriving crypto ecosystem.
2. Development of a National Bitcoin Strategy
Iwuno advocates for a national Bitcoin strategy, which would act as a roadmap for policymakers and industry leaders. Such a strategy would identify key areas for investment, guide the development of industry standards, and set long-term goals for integrating cryptocurrencies into the national economy.
3. Exploring a Bitcoin Exchange-Traded Fund (ETF)
Introducing a Bitcoin ETF could make cryptocurrency investments more accessible to Nigerians by allowing them to invest in Bitcoin without directly purchasing the asset. A Bitcoin ETF on Nigeria’s capital markets would enable both institutional and retail investors to gain exposure to Bitcoin while potentially boosting the capital market’s liquidity and appeal.
4. Encouraging Naira-Backed Stablecoin Development
A Naira-backed stablecoin could help mitigate currency volatility and inflation, while also enhancing digital payments. Developing a stablecoin pegged to the Naira would offer Nigerians a reliable means of digital transactions, enabling stable and convenient currency use without the unpredictability associated with many cryptocurrencies.
Nigeria’s Opportunity in a Growing Global Crypto Market
As cryptocurrency adoption accelerates worldwide, Iwuno highlights Nigeria’s potential to establish itself as a leader in Africa’s digital economy by embracing a forward-thinking approach to crypto assets. With major economies already incorporating digital currencies into their financial systems, Nigeria’s early involvement in cryptocurrency could give it a competitive edge, allowing the country to reap the economic benefits of this rapidly evolving sector.
By implementing a well-planned national Bitcoin strategy, Nigeria could tap into the digital economy’s growth, positioning itself as a regional leader in crypto adoption and innovation.
