- Nigeria’s digital economy could be built with less reliance on foreign technology if it had its own blockchain.
Nigeria intends to create a blockchain system to fulfill regional demands and strengthen data sovereignty. The blockchain, known as Nigerium (NITDA) by the national information and technology development agency of the country, will be built.
On Monday, nevertheless, an NITDA representative informed that there is no schedule for its creation and execution.
The committee is currently debating the prospect with relevant parties, according to Hadiza Umar, the head of corporate affairs and external relations at NITDA. There is no guarantee that Nigerium will be the name chosen, even in the event that a selection is made.
It is anticipated that Nigerium would address a number of issues pertaining to data security and transparency, offering a more effective and safe way to carry out transactions. Blockchain technology will guarantee safe and open transactions in a number of industries, according to NITDA Director-General Kashifu Inuwa.
It might be a major factor in Nigeria’s digital economy, promoting advancements in public services, healthcare, and finance. The country’s bitcoin market is thought to be around $400 million.
Nigerium’s introduction is in line with the country’s national blockchain policy, which aims to develop a strong digital economy. In May of last year, Nigeria announced a national blockchain policy.
According to the Ministry of Communications and Digital Economy at the time, the strategy will establish a blockchain-powered economy that facilitates safe transactions, data sharing, and value exchange between individuals, organizations, and the government.
The strategy is in contrast to the nation’s earlier campaign of suppression against the digital asset market. The Security and Exchange Commission and the Central Bank of Nigeria (CBN) have both issued warnings at various points in time about the potential for fraud, terrorism financing, and volatility due to the anonymity offered by virtual currencies.
This project is a response to the nation’s growing interest in blockchain technology, which has been demonstrated by earlier attempts to control and incorporate digital assets into the national economy. Crypto companies have until the end of July to register with the country’s securities authority, failing which they risk enforcement action.
According to Chanu Kuppuswamy, a blockchain specialist at the University of Hertfordshire Law, creating an indigenous blockchain like Nigerium is an important step toward attaining data sovereignty and promoting trust in digital transactions within Nigeria.
The university team lead by Kuppuswamy proposed the concept of creating a blockchain. Nigerium, she claimed, would enable Nigeria to modify technology to suit its requirements and be developed in compliance with its current legal framework.
The establishment of Nigerium is another calculated step to reduce dependence on foreign blockchain technologies. Umar asserted that the development of the blockchain will not necessarily center on data sovereignty.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
