Nigerian presidential candidate Asiwaju Bola Tinubu’s party has promised to set up an advisory committee to review regulations governing blockchain and virtual asset services if it wins the upcoming elections. The All Progressives Conference also said it would “work with the central bank and the financial sector to carefully review and better improve the exchange rate regime.”
Business-friendly regulatory framework
at recent days open statementNigeria’s presidential candidate Asiwaju Bola Tinubu’s party – the All Progressives Conference (APC) – said it plans to “establish an advisory committee to review the current regulatory environment governing blockchain technology and virtual asset services.” The APC, which is also the party of incumbent Nigerian President Muhammadu Buhari, added that when necessary the commission would propose changes leading to “a more efficient and business-friendly regulatory framework”.
According to the 80-page APC statement, the Tinubu government actually wants to reform Nigeria’s IT policy.
“We will reform government policy to encourage the judicious use of blockchain technology in finance, banking, identity management, revenue collection, and the use of crypto assets,” an APC statement excerpt.
During the tenure of outgoing President Buhari, the Nigerian government and the Central Bank of Nigeria (CBN) pursued policies that discouraged the use of crypto assets. In addition, the Central Bank of Nigeria on February 5, 2021, routing vs crypto assets as well as suffix repression Against entities that defy the system, it is believed that they have forced some start-ups to cease operations in Nigeria.
However, according to the APC statement, the government of Tinubu will give priority to establishing an appropriate regulatory framework for business. In addition, the statement states that the APC government “will also encourage CBN to expand the use of our digital currency, e-naira.”
Exchange rate issue ‘the most worrisome monetary issue’
Meanwhile, regarding the local currency exchange rate, APC acknowledges that this may be “the most memorable monetary issue today”. However, the party argues that since it affects import costs, export competitiveness, and net capital inflows, management “cannot be ignored or left to unfettered market fluctuations”.
As previously mentioned By Bitcoin.com News, the depreciation of the naira against the US dollar – albeit in the parallel market – has partially contributed to Nigeria’s high inflation. Nigeria’s inability to generate enough foreign exchange to meet the import bill is often cited as the main reason for the continued depreciation of the naira. However, although the currency fell against the dollar to just under N750; At $1, the Central Bank of Nigeria is still officially keeping the naira rate below N450: $1.
However, in its statement, APC suggested that it would take a different approach to the exchange’s management.
“To ensure that exchange rate policy aligns with our goals of optimal growth and job creation driven by industrial, agricultural and infrastructure expansion, we will work with the central bank and the financial sector to carefully review and better improve the exchange rate regime,” the APC said.
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