Nigeria In Talks With Binance To Launch A Digital City For Blockchain Advancement

The Federal Government of Nigeria is currently in talks with Binance, the world’s leading cryptocurrency exchange. The talks center on the establishment of a digital economic zone that will help entrepreneurs fast-track blockchain technology in the West African nation.

The Bloomberg report revealed that the partnership intends to build a digital hub, "similar to the Dubai virtual free zone,” according to a statement by the Nigeria Export Processing Zones Authority. 

Nigeria is the largest economy in Africa and the most populous black nation in the world. In recent years, Nigerians have turned to cryptocurrencies to save their wealth amidst the free fall of their fiat currency, the Naira.

According to recent reports, more than 23 million Nigerians currently use cryptocurrencies, representing more than 10% of the country’s population. The report said the federal government is targeting digital technology as a means to help diversify the economy away from crude oil, taking advantage of an increasingly connected and youthful population. 

The Fintech space in Nigeria is one of the fastest-growing in the world and has produced unicorns in recent years, including Interswitch Ltd. and Flutterwave Inc. With the youth focusing on cryptocurrencies and the broader fintech sector, the government’s move is to empower more people and diversify the country’s economy from crude oil. 

A study by CoinGecko in April this year revealed that Nigerians showed more interest in cryptocurrencies than any other country since the cryptocurrency market began to decline. 

On its part, the partnership will allow Binance to expand its presence in Nigeria and Africa as a whole. At the moment, Nigerian banks are banned from processing cryptocurrency transactions. 

However, with the partnership between the Nigerian government and Binance, the stance might change in the future. 

Binance’s further expansion in Africa and more positive Binance reviews ensure that the cryptocurrency exchange further cements its place as the world’s leading digital asset trading platform.