Nigeria's Currency Flow Shortage: A Case Study
A group of blockchain experts in Nigeria believes that blockchain technology can play a crucial role in solving economic problems not only in Nigeria but also throughout the African continent. Citing Nigeria's currency flow shortage as a case study, the experts discussed the potential of blockchain at the Stakeholders in Blockchain Technology Association of Nigeria's Digital Assets Summit 2023 in Abuja, the nation's capital.
Decentralized Finance and Citizen Control
According to Christopher Eniayemo, Co-Founder of Sahara ICP Hub West Africa, the decision to mint new naira notes could have been made within the decentralized finance (DeFi) system. This would have allowed Nigerians to have a say in the process and better prepare for the currency switch. Eniayemo emphasized that bringing blockchain technology to Nigeria and Africa as a whole would promote the advancement of DeFi and give citizens control over their own money and the economy.
The Role of Blockchain in DeFi
Blockchain technology provides the technical infrastructure and principles that empower DeFi to operate in a decentralized, transparent, and secure manner. By eliminating the need for traditional financial intermediaries, blockchain enables a wide range of financial services to be offered to users. This has the potential to address issues of financial exclusion and inequality.
Tinubu's Manifesto: Embracing Blockchain and Cryptocurrencies
The current Nigerian President, Bola Tinubu, released a manifesto during his campaign that, if implemented, would enable the use of blockchain technology and cryptocurrencies in the nation's banking and finance sector. The manifesto suggests reviewing existing regulations on digital assets to make them more business-friendly. This regulatory framework aims to provide transparency and clarity in the use and regulation of cryptocurrencies and other digital tokens in Nigeria.
A Move Towards a Cashless Nigeria
In an attempt to push the "cashless-Nigeria" policy and increase the adoption of the Central Bank Digital Currency (CBDC) - eNaira, Nigeria has significantly reduced the amount of cash individuals and businesses can withdraw. This move highlights the government's efforts to embrace digital forms of payment and create a more efficient and secure financial system.
