While Bitcoin (BTC) has hit two-year lows, many organizations around the world have always looked to it as a hedge against inflation. Nevertheless, Africa has been the continent that has dominated the use and adoption of BTC. According to local media reports, Nigeria, a country in West Africa, will soon enact a law that recognizes the use of Bitcoin and other digital currencies in order to keep up with “global practices.”
Punch, a Nigerian publication, broke the news on December 18 after speaking with Babangida Ibrahim, the chairman of the House of Representatives Committee on Capital Markets.
According to the report, the local Securities and Exchange Commission could “recognize Bitcoin and other digital funds as capital for investment” if the Securities and Investments Act of 2007 (Amendment) Bill is signed into law.
Ibrahim stressed the importance of keeping Nigeria up to date with capital market trends and developments:
As I stated in the second reading, we need an efficient and strong capital market in Nigeria. “We have to act quickly with international standards to be able to realize it.”
Bitcoin acceptance in Nigeria
In light of this event, it is important to note that Nigeria banned the use of Bitcoin and other cryptocurrencies in 2021 and also issued a letter prohibiting regulated financial businesses from “dealing” in cryptocurrencies.
On the other hand, this year saw a significant increase in the volume of BTC exchanges nationally, and according to a report by Chainalysis, the West African country broke records for the adoption of the digital currency. According to a report by the popular Bitcoin media, Bitcoin Magazine, Nigeria has surpassed all other countries in terms of global Bitcoin trade volume, peer-to-peer.
In addition to the legal recognition of Bitcoin and other digital currencies, the bill specifies the regulatory functions of the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) (Nigeria) on matters related to digital currencies, as well as legal recognition for BTC. and other digital currencies, according to this article.
eNaira, the digital currency issued by the Central Bank of Nigeria, has similarly received little interest from Nigerians with an adoption rate of just 0.5% since October, 12 months after its introduction.
Nigeria is one of the most populous countries in Africa, and if the upcoming bill allays investors’ concerns, Bitcoin may see significant traction, which may expand to other countries in the near future.
Despite the fact that the use of digital currency is currently banned in the country, the dominant digital currency is widely used in the region. Crypto miners are also very active here and the Bitcoin community is also building.