Nigeria works to create a more digital economy in the next 5 years

Last Updated on 54 mins by John Piper

A report has been released by Nigeria on the potential use and development stablecoins. It was one of the first to adopt a digital currency central bank (CBDC) and has been trying to implement private stablecoins into its financial system.

Its new report – Nigeria Payments System Vision 2020 –the Central Bank of the Country – outlines the reasons why stablecoins are needed. It also states that digital currencies and stablecoins will likely be one of the main payment methods for citizens to transact and pay one another. This document outlines the need to address regulation of token crowdfunding – initial coins offerings (ICOs).

Investor loss and uncertainty have resulted from a lack of regulation for ICOs in Nigeria and around the world. The Central Bank of Nigeria views ICOs as a potential method of fundraising that will allow for more innovation and raise funds without relying upon banks. Regulating ICOs is necessary for their success. According to the Bank’s document, the legal infrastructure is required ” in order for an ICO-based investment option to be adopted.”

This report focuses on digital currencies that are not covered by the CBDC, such as the eNaira. The majority of the report outlines how the CBDC could be used to improve the economy and increase the country’s financial situation. The Central Bank states that a CBDC must be fully implemented within five years. This would reduce the country’s need to print money and make it easier for citizens to keep cash. The government has established processes to limit cash flow in the country. A country-wide ban on ATM withdrawals was implemented towards the end of last fiscal year. A week’s limit on ATM withdrawals is $225 for individuals and $1125 for businesses. This law is intended to reduce cash usage and allow for a digitalized financial system.

Coin Insider’s first article, Nigeria works to create a digital economy within the next five years, appeared first here.

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