The Nigerian Youths have made up a big part of crypto trading volume, and they manage to ignore local exchanges, according to Paxful.
The biggest stock exchange in Nigeria – Nigerian Exchange Ltd. – will reportedly roll out a blockchain-enabled trading platform next year to promote the financial market and captivate young investors. The major application of the distributed-ledger technology will be in trade settlements, the company disclosed.
According to Bloomberg, the exchange will partner up with a technology company, seeking to receive acceptance from Nigerian watchdogs by 2023.
Temi Popoola – Nigerian Exchange Ltd Director. – valued blockchain technology as a facilitator of the economic market, stimulating an “effective way of trading financial assets.” He added the deployment could enable young investors to have “fast and easy access to the market,” as they have produced the majority of crypto users in the country.
The firm’s first electronic share offering, allocated by MTN Group Ltd.’s Nigeria unit the previous year, was 1.2 times oversubscribed, with 85% of the investors below 40 years old.
It’s still imprecise if the exchange will be involved with cryptocurrency. If so, it has to run in abidance with Nigeria’s SEC and the regulatory framework required by the country’s central bank.
The previous year, the Central Bank of Nigeria forbade the banking sector from performing crypto transactions while enabling individuals to trade them. The organization referred to cryptocurrency as a risk to the economic system. Nigeria’s SEC said at the time it was well-built to provide the necessary regulations and would live up to protect investors.
Bloomberg reported that African businesses and policymakers have vigorously embraced blockchain technology for various applications. Just one year after its CBDC was introduced, Nigeria is set to allow residents to pay their bills, TV subscriptions, and flight tickets using the air.
Meanwhile, South African governments are joining the fintech industry to merge the technology into the financial markets.