Why Nigeria needs to regulate cryptocurrency — Rachael Akalia

Key highlight

  • Yellow Card has advised the Nigerian government to consider regulating cryptocurrency use to protect Nigerian crypto investors and encourage adoption of the technology.
  • Despite the Central Bank of Nigeria’s stance on cryptocurrency, many young Nigerians are trading and using stable coins to hedge against inflation.
  • In the meantime, discussions with the apex bank are ongoing to create an understanding and progress is being made.
  • Cryptocurrency has become a viable means of achieving financial inclusion and facilitating cross-border payments.

Yellow Card’s Regional Marketing Manager for West Africa, Rachael Akalia, has said that the Nigerian government will protect many Nigerian crypto investors from fraud and encourage adoption by regulating cryptocurrency use.

Speaking during a press conference to discuss the company’s cryptocurrency awareness initiatives in Lagos, Akalia noted that despite the Central Bank of Nigeria’s stance on cryptocurrency, many young Nigerians are trading and using stable coins like USDT to hedge against inflation.

She said regulation would ensure that these people are well protected and promote cryptocurrency use cases for economic growth.

According to her, cryptocurrency is no longer a matter of choice but a necessity for nations to drive financial inclusion and facilitate cross-border payments.

Discussions ongoing with CBN

Akalia said cryptocurrency stakeholders in Nigeria have continued to engage with the CBN to create an understanding of why the industry needs to be regulated. According to her, the discussions had so far shown that the financial regulator is not against cryptocurrency but wants to fully understand it before it takes any action.

  • “It is a conversation that has been happening for a long time and is still ongoing, not just by Yellow Card but also by other crypto exchanges in Nigeria. So, we are hoping that before the end of the year, we will hear from the CBN. We are getting good feedback already and we hope that it will turn out positive,” she said.

Pushing cryptocurrency adoption in Africa

Highlighting initiatives by Yellow Card to drive crypto awareness and adoption in Africa, Akalia said:

  • “To further push the adoption of Crypto in Africa and facilitate cross-border payments using Cryptocurrencies, Yellow Card has partnered with Block – a publicly traded company behind the popular payment apps Cash App and Square, co-founded and led by Jack Dorsey, the former CEO of Twitter.
  • “This partnership is an effort to bring more financial inclusion to African countries. With Yellow Card’s extensive network in Africa and Block’s expertise in payments and cryptocurrency, the two companies aim to provide users with a seamless and secure way to transfer funds across borders.”

Yellow Card, which recently raised  $40 million in Series B Funding Round, is Africa’s largest cryptocurrency exchange, offering Cryptocurrency traders a seamless and simple way to make smart money moves. The exchange enables users to trade Bitcoin and other coins at the best rates, promoting financial inclusion and education on the continent.