Last Updated: 19 December 2022
A local Nigerian newspaper shares that bitcoin may soon become legal in Nigeria.
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Bitcoin in Nigeria
The news report refers to Babangida Ibrahim, the chairman of Nigeria’s House of Representatives Committee on Capital Market and Institutions. He claims that a law will soon be passed legalising the use of bitcoin and other cryptocurrencies.
It would be a bill that would amend the Investments and Securities Act of 2007.
In February 2021, Nigeria banned the use of bitcoin. It sent a letter to regulated financial companies to end cryptocurrency trading.
Staying up to date
The newspaper report describes how Ibrahim feels Nigeria is lagging behind in terms of regulating the industry:
“As I said earlier during the second hearing, we need an efficient and vibrant capital market in Nigeria. To do that, we need to be up-to-date with global practices.”
Bitcoin is increasingly gaining a foothold in the African country. A partnership between the exchange Bitnob and US lightning company Strike was recently announced. As a result, international transfers can now be made at virtually no cost through the lightning network.
If the proposed regulation properly addresses the growing use of bitcoin in the country, it could be a major catalyst. Meanwhile, however, the eNaria, Nigeria’s digital central bank money, has also been rolled out.
However, this naira has lost considerable value over the past year. As a result, capital controls have been placed on US dollars, which in turn caused huge interest in bitcoin and stablecoins through peer-to-peer platforms.
Panic intensified with a decision by the governor of the Central Bank of Nigeria. Godwin Emefiele warned leading figures and politicians to convert naira into US dollars.