The Central Bank of Nigeria (CBN) made a new decision to remove its ban on digital assets and cryptocurrencies. This has been perceived to attract big changes in the country's financial world. I am a digital transformation consultant studying things like Bitcoin and other digital money.
Let's try to look at how this recent decision could change regular people or those investing money, giving tips for dealing with the world of crypto coins next year called 2024.
Firstly, the CNB's ban lift could enhance financial inclusion in the country. What this does is allow many millions of Nigerians without banks or with limited banking access to use other money services like sending remittances using cryptocurrencies and small transactions. For people with few resources, crypto can be a strong tool for saving money and making wealth.
However, the strict regulatory framework can still be an issue for some or most. Even though the ban is over, it's been replaced with tougher rules. Get ready for rules about using cryptocurrency services, Virtual Assets Service Providers (VASPs) monitoring, stronger Know Your Customer (KYC) checks and anti-money laundering measures. This might make trading a bit harder, but it helps create an environment that is safer and more responsible.
Will there be a possible growth of the VASP ecosystem?
With rules comes honesty, making it possible for big players of VASP to enter Nigeria's market. This increase in know-how and resources should improve the way people do their jobs, make things safer and possibly reduce costs for transactions.
Nonetheless, more people joining could cause prices of cryptocurrency to go up and down more often. People should be careful and spread their investments, keeping a long-term view. Keep in mind that crypto is not a way to get rich fast.
The 2023 Finance Bill already put a tax of 10 per cent on money earned from selling digital assets. When making investment choices, people should also think about possible taxes they might owe.
On the plus side, we could witness infrastructure development in the industry. The CBN's action might draw in worldwide projects and investments related to crypto. Get ready for improvements in blockchain, digital wallets and payment systems, which will help a bigger fintech world grow.
What can we expect?
The growing world of crypto will need new skills. Nigerians who know about technology will have chances to work in fields like making blockchain, protecting computers from hackers and checking crypto.
Going through the crypto world needs learning and care. People should learn and know more about blockchain tech, manage risk and spot scams before putting money in.
The CBN's willingness to accept digital currencies could help boost its own Central Bank Digital Currency (CBDC). This might make the cryptosystem more real and give Nigerians safe, government-supported digital money.
Even though some doubts still exist, the CBN's choice opens up big chances for including more people in finances, new ideas and growing our economy. People who enter the world of crypto with learning, care and a long-term view can gain from this new money area.
Keep in mind that 2024 is an important year for Nigeria's crypto trip. Take chances, learn all you can and use money wisely to benefit from this big change in the country's finances.
As a multidimensional tech integrator, Jude Ozinegbe has a proven track record of delivering digital transformations across multiple verticals, including Tech, Healthcare, Real Estate, Hospitality, Supply Chain, Manufacturing, E-Commerce, and Education.
Jude is the Convener at Cyberchain, Nigeria's most engaging and people-focused Cybersecurity and Blockchain Conference. As a human capital developer, he brings a strategic mindset to my work, leveraging my expertise to help organizations achieve their goals.
With extensive experience as an ICT consultant in both the public and private sectors, Jude has developed a reputation as a cybersecurity and blockchain advocate. Currently, he also serve as Founder/Convener at Cyberchain and Managing Partner at Zinochrome.
