Bitcoin and other cryptocurrencies would be subject to regulation under the proposed changes if they were to be adopted by the African country.
A letter from February 2021 essentially outlawed the use of bitcoin in Nigeria by preventing licenced financial institutions from “dealing” in bitcoin and other cryptocurrencies. Coincidentally, in the same year, both Bitcoin Magazine and Chain analysis stated that Nigeria had the highest amount of bitcoin peer-to-peer trade in the world.
Newspapers quoted Ibrahim as adding, “Like I mentioned previously during the second reading, we need an efficient and thriving capital market in Nigeria.” Ibrahim was referring to the fact that Nigeria lags behind other countries in terms of industry regulation.
It’s possible that the most inhabited nation in Africa would get a significant boost from the new rule if it effectively tackles the rising popularity of bitcoin there.
Despite the present restriction, Bitcoin has a significant presence in the nation, as seen by the creation of a Bitcoin village, the involvement of Nigerian Bitcoiners in various forms of development, the charitable efforts of Bitcoin enterprises, and the thriving nature of the Bitcoin mining sector.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.