Experts in Telecommunication said the official adoption of the Blockchain technology by the Federal Government, would enhance governance and businesses by transforming the way information and other valuables are shared as well as boost confidence in its usage.
Blockchain is a distributed ledger or database, which can be either private, public, or hybrid, where anything of value, including identities, information, intellectual property, money, securities, votes, can be stored, moved, and managed openly, securely, and transparently, without any need for a third party.
The National Information Technology Development Agency (NITDA) recently announced plans by the Federal Government to adopt and regulate the technology in Nigeria at a stakeholders engagement for the review of the National Blockchain Adoption Strategy.
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According to Senator Ihenyen, General Secretary of Stakeholders in Blockchain Technology Association of Nigeria, (SIBAN), the regulations are expected to come from the relevant regulators after they have adopted the principles and strategies proposed in the National Blockchain Adoption Strategy.
Ihenyen noted that the technology if strategically adopted, would enhance growth and development of the private and public sectors of the Nigerian economy.
He said: “The implication on our financial institutions may be that they will at least officially recognize blockchain applications in the financial services industry. This may involve recognizing digital or virtual assets, as the Securities and Exchange Commission (SEC) did recently when it published its Statement on the Classification and Treatment of Digital Assets.
“With the proposed adoption strategy, it is expected that the CBN, for example, will review its hostile and restrictive approach towards cryptocurrencies, not by accepting them as legal tender, but by recognizing them as a class of financial asset while it continues to enforce its AML/ KYC and CFT policies”.
