In a bid to boost investment in its local economy, the Nigeria Stock Exchange (NGX) Ltd. has revealed its plans to launch a blockchain-enabled exchange platform next year, according to a Bloomberg report.
NGX’s management announced the paradigm move on Friday.
Speaking on the development, the Chief Executive Officer of the exchange, Temi Popoola, explained that the move is primarily designed to increase interest and boost investment in Nigeria’s local market, especially among young people.
In her words,
For a lot of young and upcoming Nigerians, that is the kind of technology they adopt, and we want to see how we can deploy it to grow our market.
Per Bloomberg, the company intends to use the platform to complete capital market transactions.
Speaking further, Popoola noted that it would achieve this through the use of sophisticated technology that is popular among young investors interested in diversified products that gives them easy entry into the local market.
She also noted that the company is set to enter into a partnership with a technology company to help it deploy and complete every regulatory requirement before launching the initiative next year.
Nigeria Crypto Policy is Unclear
Reacting to the announcement, a Nigerian tech policy analyst, Gbemisola Alonge, noted that based on the current crypto policy in the country, investors would remain skeptical.
Alonge said:
It’s almost impossible to think of blockchain without including cryptocurrency, so if the adoption is not in agreement with the central bank’s position, there may be skepticism from investors.
Last year, the country’s Central Bank (CBN Nigeria) officially banned commercial banks from facilitating crypto transactions saying that the asset class poses a threat to the financial system.
Since then, the apex bank has forced the banks to ban customers who use their accounts to carry out crypto transactions. However, that has not deterred the mostly youthful population from crypto.
Meanwhile, Nigeria Securities and Exchange Commission remains pro-crypto as it recently released a new guideline for the industry in the country.