Christopher Eniayemo Suggests DeFi Could Have Guided Decision to Print New Naira Notes, Involving Nigerians in the Process.
A collection of local blockchain experts cited Nigeria’s currency flow shortage as an example of how blockchain technology can assist in resolving economic issues in Nigeria and across the African continent.
At the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN)’s Digital Assets Summit 2023, held in Nigeria’s capital, Abuja, stakeholders discussed the decision by the previous government to print new naira notes — Nigeria’s fiat currency — and the country’s recent efforts to increase central bank digital currency (CBDC) adoption, both of which led to a shortage of naira at the time.
Christopher Eniayemo, co-founder of Sahara ICP Hub West Africa, asserts that the decision to print new naira notes could have been made within the decentralized finance (DeFi) system, giving Nigerians a voice and enabling them to better prepare for the switch.
“Bringing blockchain system to Nigeria and Africa as a whole will help promote the advancement of DeFi and give citizens control over their own monies and economy.”
Blockchain technology provides the technical infrastructure and guiding principles that enable DeFi to operate in a decentralized, transparent, and secure manner, thereby eliminating the need for traditional financial intermediaries and enabling DeFi to offer users a broad range of financial services
Nonetheless, during his campaign, the current president of Nigeria, Bola Tinubu, published a manifesto that, if implemented, would permit the use of blockchain technology and cryptocurrencies in the nation’s banking and finance sector.
The manifesto proposes reviewing extant Nigerian Securities and Exchange Commission regulations on digital assets to make them more business-friendly. The new rule establishes a regulatory framework for digital assets such as cryptocurrencies and other digital instruments in Nigeria.
Nigeria imposed limits on how much currency individuals and businesses can withdraw from banks and ATMs in 2022 to promote a “cashless-Nigeria” policy and increase the use of its CBDC, the eNaira.
