Nigeria and crypto exchange Binance met informally to discuss the possibility of creating a special economic zone to help companies involved in the blockchain and cryptocurrency industries.
Nigerian government representatives are negotiating with Binance to create a digital economic zone with a focus on companies involved in blockchain and cryptocurrencies. The Nigeria Export Processing Zones Authority disclosed that the proposed digital center will resemble Dubai’s virtual free zone.
As a result, the cryptocurrency exchange is in early talks with the technological infrastructure firm Talent City to construct the ambitious “Virtual Free Zone” that would aid businesses in West Africa in accelerating the use of blockchain technology.
Binance to Help Increase Economic Prospects with Virtual Free Zone
The early intentions were addressed on Friday in Dubai at a meeting between Adesugba, Nadeem Ladki, CEO of Binance, Luqman Edu, CEO of Talent City, and Sikiru Lawal, director of NEPZA.
The conversations between Nadeem Ladki, executive director of business development and strategic partnerships at Binance, and Adesoji Adesugba, managing director of NEPZA, are still in their preliminary phases. The partnership is created to break new ground to increase economic prospects for Nigeria following the Authority’s mission, the Honourable Minister’s instruction, and President Muhammadu Buhari’s economic development strategy.
The ultimate objective, according to Adesugba is to “create a thriving virtual free zone to capitalize on a near trillion dollar virtual economy in blockchains and the digital economy.”
To further encourage the use of cryptocurrencies in the West African area, Adesugba noted that the action would be a component of Nigeria’s goal for economic growth.
Nigeria Spearheading Crypto Adoption in Africa
Nigeria has demonstrated more interest in cryptocurrencies than any other country, despite the collapse in asset prices last year. The popularity of cryptocurrencies has risen steadily over the past several years in Africa, driven by a deficient financial system, unpredictable government policies, and inflation. Nigerians seem to be spearheading this surge as a recent study by Coingecko suggests.
According to a recent study by CoinGecko, Nigerians are the most fascinated with cryptocurrencies, having searched for the phrases “cryptocurrency” and “purchase crypto” more frequently than the citizens of any of the other 14 nations examined.
In October 2021, the Nigerian government released its first central bank digital currency (CBDC) called the eNaira. Since its inception, the country has been making plans to make digital currency available for all citizens with a target of 8 million users.
The country’s first central bank digital currency (CBDC), eNaira, was also introduced in Nigeria in October 2021. It is presently in its second phase and aims to promote financial inclusion by enrolling Nigeria’s unbanked individuals.