Look How Nigerian Government is Fostering Crypto Adoption With New CBN Law
Nigeria Government keeps doing the most to foster the adoption of cryptocurrencies by its citizens.
One will think this statement is written in a positive light however, reverse is the case, from unsolicited seizing of accounts to harsh internal currency devaluation due to economic instability and resource mismanagement, the present state of the country and the Nigerian government keeps making moves that is forcing its citizens to seek and embrace other options of preserving their wealth and most are turning to cryptocurrency.
Unclaimed dividends and bank account balances unattended to for at least six years will available as special credit to the federal government through the Unclaimed Funds Trust Fund.
In the latest financial news from Nigeria, according to the finance Act 2020 recently signed into law by President Mohammed Buhari, the trust fund will be a sub-fund of the Crisis Intervention Fund.
“Any unclaimed dividend of a public limited liability company quoted on the Nigerian Stock Exchange and any unutilised amounts in a dormant bank account maintained in or by a deposit money bank which has remained unclaimed or unutilised for a period of not less than six years from the date of declaring the dividend or domiciling the funds in a bank account shall be transferred immediately to the trust fund,” the act read.
A lot of people have taken to Twitter to express their dissatisfaction with this plan, most feel the govt should not have access to interfere with accounts of the public whether dormant or not, the idea of having hopes in the safety of Banks just keeps being flawed.
All this only shows that there is a imperative need for new financial education and safer ways of saving ones money that is beyond the reach of the government which all points to cryptocurrency. This was one of the problems Satoshi envisioned to solve when inventing Bitcoin, a sovereign financial system.
It is no wonder Nigeria ranks highest when it comes to the number of people who claim to have cryptocurrency in the world, according to statista
Few weeks ago, Nigeria also ranked as the country with the highest number of on Chain deposits ahead of United States, Venezuela and China, according to Global cryptocurrency adoption index. I wrote more information about this in the post below.
While crypto adoption for Nigerians is a good thing, the government is unknowingly pushing for the opting out of its fiat system due to its many inconsistencies as the citizens scramble for a safe haven. This is merely only the beginning in my opinion, by the time the larger populace realizes other uses of crypto besides hedging of funds, then there will be more influx of people into the space.
More than ever, cryptocurrency has proven how relevant it can be to a poverty stricken third world nation like Nigeria in terms of preservation of wealth which is only a piece of the puzzle.
Generation of wealth is an aspect that remains untapped by the large populace which has the potential to have a tremendous effect on the economy/finances of individuals.
This trend in adoption of Crypto is only bound to keep increasing as more applications are being developed to offer people an alternative and more beneficial system, also as more become aware of the technology.
From breaking barriers, becoming boderless and permisionless, to being censorship resistant and decentralized, it is no doubt why Crypto is taking on the corrupt practices of the traditional fiat system and turning it on its head.
Thank you for reading. Cheers...
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