The Electronic Payment Practitioners Association of Nigeria (E-PPAN) is asking government regulators in the country for clearer guidelines to drive the industry forward.
This follows reports, including a statement by E-PPAN, that there is a growing possibility of fintech businesses offering blockchain services being driven overseas unless both the Nigerian government and the Central Bank of Nigeria can offer clarification on its view towards cryptocurrency.
A new Nigerian blockchain hub was announced by the government in August in conjunction with UK blockchain firm Coinfirm. The resulting launch of the Africa Blockchain Lab promises to offer financial inclusion to many Nigerians outside of the country’s financial system and also to attract new startups as part of the country’s drive to support the adoption of blockchain and cryptocurrency technologies in the continent.
However, the Bitcoin Exchange Guide claims that Central Bank governor Godwin Emifele has done little to encourage the growth of cryptocurrency; investors continue to be reluctant owing to the government’s lack of guidelines. Despite the launching of the Africa Blockchain Lab by state-backed KAD ICT Hub, cryptocurrency still struggles to receive recognition in Nigeria due to its continued links to criminal activities by authorities.
“Investments in blockchain-based financial services such as cryptocurrency are today going to Rwanda and Malta, which have provided regulatory frameworks that guide operators of the technology,” claims Ade Atobatele, founder of Gboza Gboza Technology Ltd, and member of E-PPAN.
This hasn’t stopped PundiX setting its sights on Nigeria, recently introducing Point of Sale (POS) machines which enable users to pay in Bitcoin and Ether along with the country’s local currency, the Naira. Nigeria certainly has the potential to accommodate such facilities with Africa’s largest contingent of Bitcoin holders and a population of 185 million, representing the continent’s largest population of potential users and investors. Localbitcoins is reported to have seen a trading volume of USD 260 million this year to date.
Nigeria should be looking to overseas for regulation, according to E-PPAN member Michael Kiberu, calling for regulators to look to countries such as Uganda, Switzerland, Kenya, and Japan, where cryptocurrency guidelines are clear and operate with legal status, while creating a healthy flow of capital into the financial sector.
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