Cryptocurrencies like Bitcoin can significantly reduce remittance costs, making it easier and cheaper for Nigerians abroad to send money home, according to Emomotimi Agama, the Director General of the Securities and Exchange Commission (SEC) in Nigeria.
During the 2024 Annual Conference of the Association of Capital Market Academics of Nigeria (ACMAN), Agama highlighted the potential of cryptocurrency to benefit Nigeria’s unbanked population. He projected that the country’s cryptocurrency market could reach $52.5 million by 2028.
Crypto Adoption and Transaction Volume
Agama mentioned that Nigeria’s current cryptocurrency market is valued at over $400 million, with a large portion of the population actively participating in crypto trading and transactions. He pointed out that around 33.4% of Nigerians own or use cryptocurrencies, presenting a significant opportunity to extend financial services to the over 38 million unbanked adults in the country.
He emphasized the advantages of cryptocurrencies for providing financial services, especially for those without traditional bank accounts. “Some people don’t have bank accounts, but they have wallets,” Agama said, highlighting the accessibility of cryptocurrencies.
Agama also noted that cryptocurrencies could greatly reduce remittance costs, with Bitcoin transactions making it easier and cheaper for Nigerians in the diaspora to send money home. Nigeria is one of Africa’s largest recipients of remittances.
Call for Clear Crypto Regulations
Despite the potential benefits, Agama acknowledged the challenges associated with cryptocurrency use, such as regulatory uncertainty, security concerns, and financial literacy issues. He stressed the need for a balanced regulatory approach to harness the advantages of crypto assets while mitigating risks.
Summary Review: Nigeria’s SEC sees significant potential in cryptocurrencies to aid the unbanked and improve financial services, but emphasizes the importance of clear and balanced regulations to ensure security and stability in the market.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
