According to recent crypto industry updates, Nigeria will pass legislation to accept cryptocurrencies as legal tender. A native Nigerian newspaper has reported that the chairman of the House of Representatives Committee on Capital Markets and Institutions of Nigeria, Babangida Ibrahim, has affirmed the plans to pass the bill to regulate digital currencies.

At present, the bill has gone through the second reading. The Security and exchange commission (SEC) will “recognize cryptocurrency and other digital funds as capital for investment” if the Investments and Securities Act 2007 Bill is passed.

In the process of accepting Bitcoin and other cryptocurrencies as legal tender. The new law will explain the regulatory functions of SEC and CNB for digital currencies in Nigeria.

Nigeria takes its steps back from banning crypto

In 2021, cryptocurrencies and related activities were banned by the Central Bank of Nigeria (CBN). The bank has ordered all crypto trading firms and exchange services to close down their crypto exchange and trade activities. CBN was so strict that it made it mandatory for the banks to cease crypto account holders or those involved in related activities.

Nigeria to keep up with global innovations. 

As many industry experts predict that the cryptos are the future of finance as we see it now, Ibrahim stated that to remain “up to date with global practices,” Nigeria should also catch up with the new global innovations.

He said, “It is not about [the] lifting of the ban. We are looking at the legality: what is legal and what is within the framework of our operations in Nigeria.”

This turn of events happened when the eNaria, the digital currency of CBN, one year after its launch, received a 0.5% adoption rate in October 2022.

In recent days, Nigeria has seen a rapidly increasing number of Bitcoin adopters around the globe. According to reports, the West African country has emerged as the only country in the world in terms of peer-to-peer bitcoin trade volume. Nigeria has an estimated 50% active adult crypto traders monthly, the highest among other nations.

The Nigerian government has taken another step forward in accelerating cryptocurrency adoption; they have limited cash withdrawals for businesses and individuals. This will have effects on almost 200 million people.

The new limits are set for individuals at $225 per week and $1123 for businesses for over-the-counter withdrawals.

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