Blockchain
Uncertainty threatens blockchain adoption
Nigeria’s journey toward blockchain adoption is encountering significant hurdles, primarily due to ongoing regulatory uncertainties. Despite the country’s proactive steps, such as the introduction of a national blockchain adoption strategy in May 2023 and the establishment of the National Blockchain Policy Steering Committee in May 2024, these efforts are at risk of stalling without clearer regulatory frameworks.
Current State of Blockchain Regulation in Nigeria
Obinna Iwuno, President of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), has expressed concerns that Nigeria’s regulatory environment is still evolving, leading to uncertainty that hampers the adoption of blockchain technology. Although the Central Bank of Nigeria has lifted restrictions on banks’ dealings with cryptocurrencies—permitting virtual asset service providers (VASPs) to operate accounts with banks—banks themselves are still prohibited from holding or trading cryptocurrencies. This partial lift creates a confusing landscape for both financial institutions and blockchain enterprises.
Moreover, while the Securities and Exchange Commission (SEC) is working on regulatory measures for crypto assets, the absence of issued licenses has led to further uncertainty within the industry. The delay in establishing a comprehensive and cohesive framework for blockchain and cryptocurrency operations in Nigeria has raised concerns among stakeholders.
International Comparisons and Suggested Strategies
SiBAN’s president highlights how other countries have successfully navigated similar challenges by implementing clear and supportive regulatory frameworks. For instance:
– Estonia has achieved regulatory clarity through well-defined legal structures and government policies.
– Singapore has fostered a progressive regulatory environment for blockchain technology and cryptocurrency, spearheaded by the Monetary Authority of Singapore.
– Switzerland provides a clear classification system for cryptocurrencies and tokens, distinguishing between payment tokens, utility tokens, and asset tokens.
These examples suggest that Nigeria could benefit from adopting similar strategies, particularly in the classification of digital assets, which could provide the clarity needed for broader adoption.
Recommendations for Nigeria’s Blockchain Policy
Chimezie Chuta, Chairman of the National Blockchain Policy Implementation Steering Committee, has proposed that Nigeria should consider adopting consortium or federated blockchains. This approach involves governance by a group of organizations rather than a single entity, which could offer several advantages:
– Controlled Access: Easier management of who can participate in the blockchain network.
– Scalability and Efficiency: Enhanced ability to scale operations while maintaining high efficiency.
– Support for Smart Contracts: Better integration and enforcement of smart contracts.
– Regulatory Compliance: Improved alignment with regulatory requirements.
These suggestions aim to foster collaboration among stakeholders, improve scalability, and ensure regulatory compliance, which could accelerate blockchain adoption in Nigeria.
Nigeria’s ambition to become a leader in blockchain technology is evident through its various initiatives. However, to achieve its goals, the country must address the regulatory uncertainties that currently stifle innovation and adoption. By looking to international examples and considering the adoption of consortium blockchains, Nigeria can create a more favorable environment for blockchain technology to thrive, thereby enhancing its position in the global digital economy.
Source: punchng.com
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Blockchain
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Blockchain
This Week in Finance News: 11 Stories You Need to See
With thousands of press releases published each week, it can be difficult to keep up with everything on PR Newswire. To help finance journalists and consumers stay on top of the week’s most newsworthy and popular releases, here’s a recap of some major stories from the week that shouldn’t be missed.
The list below includes the headline (with a link to the full text) and an excerpt from each story. Click on the press release headlines to access accompanying multimedia assets that are available for download.
- Prosperity or catastrophe: #Insurance2040 study reveals four possible futures for the industry
By 2040, technological innovation driven by customer centricity could pave the way to greater climate resilience and more personalized offerings by the insurance industry. Alternatively, insurance could become a luxury afforded only to the wealthiest few. - Cardinal Health announces two strategic additions to its portfolio
Cardinal Health will acquire a majority stake in GI Alliance (GIA), the country’s leading gastroenterology (GI) management services organization (MSO), from a combination of GIA physician owners and funds managed by affiliates of Apollo. Cardinal Health will also acquire the Advanced Diabetes Supply Group (ADSG), one of the country’s leading diabetic medical supplies providers, for approximately $1.1 billion in cash. - BlackRock Launches New BUIDL Share Classes Across Multiple Blockchains to Expand Access and Potential of BUIDL Ecosystem
This initiative represents the next step in the evolution of the tokenization market, by enabling BUIDL to be used within leading blockchain-based financial products and infrastructure across ecosystems. - Primo Brands Corporation Announces Successful Completion of Merger of Primo Water and BlueTriton Brands
“I believe Primo Brands is positioned to be a leader in the healthy hydration beverage category, thanks to the strength of its iconic, sustainably-sourced brands, its robust operations and extensive North American network, and its responsible operation of numerous springs across the country,” said Dean Metropoulos, Non-Executive Chairman of the Board of Directors of Primo Brands. - Jackson Hewitt Tax Services Expands Workforce, Offering Job Opportunities Nationwide for Upcoming Tax Filing Season
The week-long event will launch the combined hiring of 18,000 employees to prepare for the upcoming tax filing season. The Jackson Hewitt hiring events are open to the public and include on-site interviews. Qualified candidates could receive a job offer immediately. - PNC Bank to Double Planned Branch Openings to More Than 200 Across Six States This announcement brings the bank’s total investment to approximately $1.5 billion to open more than 200 new branch locations in 12 cities across the U.S. over the next five years, while completing the renovations of 1,400 existing branches during the same time period.
- Alchemy Pay Expands Virtual Card Functionality with Google Pay Support The new card BINs added will significantly enhance the capabilities of crypto cards, expanding their support for a broader range of payment scenarios and improving transaction success rates. This advancement is particularly impactful when paired with Google Pay, one of the most popular and widely used digital payment platforms, trusted by millions for its convenience and security.
- Finaya Unveils Nationwide Homeownership Platform
From providing rich and current information about home values and property conditions, to finding helpful repair and remodeling providers, to shopping for and securing the right insurance, the platform simplifies the homeownership process, making it more accessible, convenient and efficient. - GenAI predicted to inspire revenue growth in 76% of businesses, but only 4% qualify as “leaders” in AI and analytics
Kearney’s report confirms that businesses are not only aware of how big data, AI, and analytics will impact revenue generation and enhance business strategies, but they are investing to stay ahead of the curve, too. - GameAbove Sports Acquires Meaningful Ownership Stake in Brisbane Bullets with NBA Legend George Gervin as Part of Ownership Team
This move marks a significant milestone for GameAbove Sports, a CapStone Holdings Inc. company, as it expands its influence on international basketball ahead of the Brisbane 2032 Olympics. - Most US shoppers are encountering generative AI while shopping without realizing it
A survey of 700 online shoppers in the US shows 71% are unaware of having used generative AI while shopping online even though most had recently shopped at retailers currently using it. 41% of customers say they would feel comfortable using a generative AI tool from a brand they trust.
For more news like this, check out all of the latest finance-related releases from PR Newswire.
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