ACR #23: Off to the right start?
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What’s the news?
The Nigerian government has officially approved the National Policy on Blockchain, a move many people in the industry call a significant step towards using the technology in the country.
It will also be setting up a committee to oversee the implementation of the new policy with other relevant government agencies.
What this means
The country seems to be on a roll regarding releasing blockchain frameworks. Only a few weeks ago, the Nigerian securities & exchange commission also put out a framework for digital exchanges to list tokens backed by tangible assets.
This recent document from the national information technology development agency (NITDA) is a high-level strategy framework approved by the highest government authority in the country to guide the adoption of blockchain technology in the coming years.
However, what’s stood out in those two frameworks is the conscious decision to differentiate between blockchain technology and “bitcoin & crypto”.
“A lot of the focus has been on cryptocurrencies, especially bitcoin. However, there is a lot more that blockchain can do for the economy, and this Strategy document aims to redirect the focus to other areas”, the document says.
I think these frameworks have ignored the clear evidence that Nigerians love cryptocurrencies, not blockchain. For example, this recent document referenced the Chainalysis blockchain report where Nigeria ranked 8th out of 154 countries in the “crypto global adoption index”. In the policy, it was called the “blockchain global adoption index”.
The government has cracked down on cryptocurrencies since 2021 after the country’s central bank stopped financial institutions from banking crypto exchanges and services.
There are still questions unanswered regarding cryptocurrencies, which is where the adoption is right now, and how the regulators view them and also creating laws that could protect users from shady crypto platforms (like FTX).
What else?
P2P Bitcoin Exchange Paxful Back Online After Temporary Suspension
Peer-to-peer (P2P) bitcoin exchange Paxful has resumed operations after being shut down for over a month, the company said in a blog post.
3% Tax on Crypto Transfers Part of Kenya's Proposed Budget
Kenya's Finance Ministry, the National Treasury, has proposed a 3% tax on the transfer of digital assets for the coming budget year, according to a Bloomberg report that cites proposals presented to lawmakers. The nation's budget will be presented on June 8.
Zone (formerly Appzone), Africa’s first regulated blockchain network for payments, has been featured in the Financial Times Africa’s Fastest Growing Companies 2023 award list.
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