The Digital Currency Coalition (DCC) is canvassing for a structured digital currency ecosystem in Nigeria.
DCC is Africa’s premier consortium of crypto asset practitioners, blockchain innovators, and founders.
In an official statement, the coalition argued for the regulation of digital currency ecosystem in Nigeria noting that regulation was necessary not only to safeguard the sustained growth of the ecosystem but the broader Nigerian economy.
DCC expressed confidence in the regulatory discussions led by President Bola Tinubu and the minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, which aligns with the consortium’s long-standing call for a regulated digital currency sphere.
These discussions have been deepened by a key document from the International Monetary Fund (IMF) and Financial Stability Board (FSB) titled ‘IMF-FSB Synthesis Paper: Policies for Crypto-Assets’, it added.
Nigeria was the first country in Africa to introduce a central bank digital currency (CBDC) with unveiling of the eNaira in October 2021. The main reasons were to promote financial inclusion, increase cross-border transactions, facilitate diaspora remittances and complement existing payment systems.
Unlike bitcoin and other cryptocurrencies, the eNaira is issued and regulated by a government authority, the Central Bank of Nigeria.
But last July, Nigeria announced it was changing its eNaira model to encourage more use of the CBDC.
“Importantly, DCC has proactively self-regulated and complies with the Financial Action Task Force (FATF) standards for Anti-Money Laundering, including enforcing the travel rule among its members. We are committed to identifying and implementing effective anti-money laundering and counter-terrorist financing measures that apply to virtual assets and service providers,” the coalition stated even as it expressed readiness to collaborate with the federal government to develop comprehensive policy and regulatory frameworks that address concerns like financial stability, market integrity, and investor protection, among other risks related to crypto assets.
Its words: “We believe that a well-regulated digital currency space is vital for the economic future of Nigeria and are ready and willing to be part of the journey to regulation, supporting the government under President Tinubu’s leadership.”