As one of the world’s pioneers in adopting its own central bank digital currency (CBDC), Nigeria also declares its readiness to accept the existence of private stablecoins. The necessity to create a legal framework for stablecoins is noted in the latest central bank strategy paper.
Published under the headline “Nigeria Payments System Vision 2025”, the 83-page report from the Central Bank of Nigeria (CBN) considers the development of a regulatory framework for the potential usage of stablecoins. The document outlines the need to develop a framework, given that stablecoins are likely to become a successful payment mechanism in the country.
The report also pays attention to the regulation of initial coin offerings (ICOs). It highlights the current absence of regulation in the area, causing investor losses. However, the CBN sees potential for adopting ICOs as a new approach to fundraising for capital projects, peer-to-peer lending and crowdfunding. Hence, a regulatory framework is also needed “in the event of adoption of an ICO-based investment solution.”
However, the stablecoins and ICOs segment of the report is far smaller than the one dedicated to the eNaira, Nigeria’s CBDC. The Central Bank considers it a potential “enabler for transformation” in the national economy. It hopes to achieve a final implementation of the currency in 3 to 5 years.
In December 2022, Nigeria reduced the amount of cash individuals and businesses can withdraw to $225 and $1,125 per week, respectively, in an attempt to push its “cash-less Nigeria” policy and increase the use of the eNaira.
As reported by Cointelegraph, adoption rates of the eNaira have been low since its launch in late 2021, with less than 0.5% of the population using it as of Oct. 25, 2022. The government has struggled to convince Nigerian citizens to use the CBDC despite the country being identified by Chainalysis as the top country in Africa for crypto adoption and ranking 11th globally.
Digital rights advocacy group Fight for the Future has posted an open letter on its website encouraging the new members of the U.S. Congress to protect privacy. The letter has attracted dozens of companies and organizations as cosigners.
“Increasingly, the incredible creative power of U.S. software developers is being chilled by clumsy, misguided legislative and regulatory actions,” the authors of the letter wrote. This is in spite of the fact that the First Amendment to the U.S. Constitution protects code as speech, the letter added, and that was why many technologies to protect privacy were created in the United States.
As “an illustration of the robust digital future you [new legislators] should foster,” the letter mentioned Filecoin, ZCash, MobileCoin and several communications protocols by name. The letter encouraged the lawmakers to protect privacy rights, champion end-to-end encryption and safeguard personal data.
In addition, the letter called for “working to identify and correct power imbalances.” The authors explained:
“We need online spaces that are not owned or controlled by a single person, as they put user privacy at risk. We need tools that give individuals and communities power over their online experience.”
Fight for the Future’s campaigns and communications director, Lia Holland, told Cointelegraph in a statement:
“Our objective with this letter is to sound the alarm that the previous Congress’ neglect of privacy as a human right cannot continue. […] It’s time for our legislators to stop trying to punish the open source and decentralized software developers who are giving everyday users as well as vulnerable communities like journalists, activists, abuse survivors and minorities the tools they need to protect their privacy online.”
At the time of writing, the letter had 36 signatories, including industry players such as the Blockchain Association, DeFi Education Fund, Ledger, Nillion Network, Protocol Labs and Proton. New signers are still being accepted.
UK crypto app Tap Global has become the first 2023 listing on the Aquis Stock Exchange (AQSE), according to a Jan. 10 press release from the company. The listing was accomplished through a reverse takeover by Quetzal Capital.
Tap provides fiat banking services, a crypto swap service that sources crypto from partner exchanges and access to staking and DeFi protocols to UK and EU residents. The app is regulated as a bank by the Gibraltar Financial Services Commission.
Quetzal acquired the company by trading 20.5 million British pounds ($24.9 million) of its own stock to Tap Global shareholders in exchange for ownership, and it raised another 3.1 million pounds ($3.8 million) by issuing new shares. These funds will be used to “increase marketing spend and drive international expansion,” according to the press release.
Tap Global CEO David Carr acknowledged that the company’s decision to list on a public exchange “raised some eyebrows,” since it came so soon after the collapse of FTX, at a time when the crypto industry is facing increased skepticism. However, Tap decided to go through with the listing anyway because it wanted to offer a regulated option for UK residents, he said, adding:
“Like any emerging technology, cryptocurrency has seen its fair share of bad actors impacting market sentiment. However, as firms that have not shown proper care in safeguarding assets fall to one side, the market will mature, leaving fully regulated and responsible firms, such as Tap, well-positioned to succeed.”
Crypto exchange apps have been under increased scrutiny by regulators and customers after the collapse of FTX in November. The world’s largest exchange by volume, Binance, is reportedly under investigation in the United States. Coinbase, the only crypto exchange listed on the New York Stock Exchange, has faced falling revenue as trading volumes have declined.
But despite these challenges in the industry, this recent listing by Tap Global shows that some crypto services are still finding success.
This Daily Dose was brought to you by Cointelegraph.