The Nigerian government is set to propose a bill recognizing Bitcoin and other crypto as a means of payment in an effort to strengthen the country’s payment methods and keep up with international economic development.
Babangida Ibrahim, Chairman of the House of Representatives on Capital Markets and Institutions gave the announcement in an interview with Punch Newspapers. He said Nigeria’s Securities and Exchange Commission (SEC) would be able to recognize bitcoin and other digital monies as capital for investment upon passage and enactment of the proposed bill.
The lawmaker stated that Nigeria needs to keep up with global practices, hence the need to review the ban on the use of crypto in the country. He added that Nigeria needs a successful and active capital market hence the need for the adoption of the new policy.
Ibrahim also highlighted that investors stopped using local bank accounts when the government banned crypto in 2020, hence they were out of checks by the Central Bank. According to him, the adoption of the new policy will ensure that investors are properly regulated and within the jurisdiction of the Central Bank.
The news came shortly after Nigeria joined the CBDC movement by announcing a policy on fiat distribution that aims to restrict cash withdrawals by people and businesses in order to encourage the usage of e-Naira.
Emerging Global Crypto Markets
The Bank of England has joined other countries across the globe in the adoption of crypto and conducting focused research into the potential use of a Central Bank Digital Currency (CBDC).
The Bank of England announced the launch of an application for a sample wallet for its proposed CBDC, the Digital Pound, based on a proof of concept. The report stated that the application is now open and will close on December 23, with the project starting no later than January 23.
The Bank of International Settlements (BIS) has also announced a new rule in the favour of crypto payment. The new policy will permit banks to store bitcoin equivalent up to 2% of their reserves.
The BIS stated in its December 2022 Prudential treatment of crypto asset exposures report that the policy will go into effect on January 1, 2025, and that it will cover several aspects of how crypto assets are to be defined and processed.
