Blockchain could have prevented Nigeria’s naira scarcity — Local experts
Blockchain technology can help solve economic problems in Nigeria and throughout the African continent, according to a group of local blockchain experts who cited Nigeria’s currency flow shortage as a case study.
At the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN)’s Digital Assets Summit 2023, held in Nigeria’s capital, Abuja, stakeholders discussed the decision by the previous government to print new naira notes — Nigeria’s fiat currency — and the country’s recent efforts to increase central bank digital currency (CBDC) adoption, which both led to a shortage in the flow of naira at the time.
How Blockchain can help
- Blockchain technology provides transparency and immutability, making it difficult for corruption and fraud to occur.
- By implementing blockchain in Nigeria’s financial system, the flow of naira can be tracked and monitored more efficiently.
- Smart contracts can be used to automate transactions and reduce the need for intermediaries, leading to cost savings.
- Blockchain can enable faster and more secure cross-border transactions, promoting international trade.