ACR #7: What Nigeria's potential stablecoin regulatory framework means
Nigeria to establish a regulatory framework for stablecoins
According to a new strategy paper released in the past week by Nigeria’s central bank, it wants a legal framework for stablecoins and Initial Coin Offerings(ICOs). The paper highlights the need to provide a framework considering the fact that stablecoins could be a successful payment scheme in the country.
“Stable Coin implementations are likely to be a successful payment mechanism. There is a need to develop a regulatory framework for such implementation that almost certainly will be used in Nigeria”, the report says.
What does this mean?
Much emphasis has been put on the Nigerian CBDC, eNaira, whose adoption rate has been low since its launch in 2021. According to a report, the CBN has struggled to convince its citizens to use the digital currency, with less than 0.5% of the population reported to have used the eNaira as of Oct. 25, 2022, a year after its launch.
With the slow start to the eNaira, the Nigerian authorities could be exploring other “crypto” alternatives to digitise the national economy that is largely still cash-based.
The paper gave the example of JPM coin - it’s a permissioned network created to allow J.P. Morgan’s clients to transfer within its system USD deposits, making the movement of money and payments better and more efficient.
That gives an idea of what the central bank is thinking in terms of implementation: the framework will most likely be focused on permissioned blockchains (controlled by a central entity) that could be built by banks or fintech companies in the country for a faster and more transparent payments system.
What else?
Nigerian Crypto Exchange Roqqu Receives European Virtual Currency License
Roqqu was granted the license after waiting two years for the permission. The move allows the firm to operate in 30 countries and broaden its services within one of the world’s largest crypto markets.
Nigeria Now Has An Active Bitcoin Lightning Network Node Operating
This is currently the only active node operator in Nigeria as seen on the lightning network map.
What’s going on abroad?
Media power group files request to reveal SBF’s secret bail signatories
AP, Reuters and CNBC are among the publishers requesting that the two co-signers funding the disgraced FTX founder’s bail bond be made public.
El Salvador passes landmark crypto bill, paving way for Bitcoin bonds
El Salvador has passed landmark legislation providing the legal framework for a Bitcoin-backed bond — known as the “Volcano Bond” — that will be used to pay down sovereign debt and fund the construction of its proposed “Bitcoin City”.
3AC founders Zhu and Davies pitch to raise $25 million for new crypto exchange
The founders of defunct crypto hedge fund Three Arrows Capital which went from $10 billion to zero real quick are pitching investors on a new crypto exchange focused on claims trading.
What’s the meme?
What we’re reading
Bitcoin, Sango Coin and the Central African Republic
That’s all for this week!