Report: Binance in Talks to Create a Nigerian Digital Economic Zone

Crypto platform Binance is reportedly in talks with Nigerian authorities to help fast-track blockchain tech for the West African country by establishing a digital economic zone.

The Nigeria Export Processing Zones Authority said it would consider making a digital hub like the Dubai virtual free zone, Bloomberg reported Sunday (Sept. 4). The government made regulations this year for trade in digital assets, while Nigeria Exchange will start a blockchain-enabled platform to boost trade.

Nigerians have had a greater interest in crypto than any other country since the digital assets started to decline in April, CoinGecko reported. The country is one of the most prosperous nations on the continent and has been looking into ways to diversify its economy from its reliance on crude oil.

The younger, more connected populace seems to be a way for the country to do that, as FinTechs like Interswitch and Flutterwave have emerged there and gotten billion-dollar-plus valuations.

Nigeria also rolled out a new digital currency last year, with the country pushing to get 8 million users to adopt the eNaira, up from a yearlong total of 840,000.

Learn more: Nigeria Aims for 8M eNaira Users as Crypto Adoption Grows

The country’s central bank wants to reach this goal by attracting those without bank accounts. Many Nigerians have been turning to crypto as the naira loses value, even in spite of a warning by the central bank that commercial lenders have had to stop crypto transactions.

“Just like the naira, the eNaira is expected to be available to all Nigerians and will provide more possibilities to bring the unbanked into the digital economy,” Central Bank of Nigeria Governor Godwin Emefiele said.

The eNaira had around 270,000 active uses as of the report, which was compared to the 33.4 million Nigerians who have either owned or traded in crypto. Nigerians had traded around $400 million as of June this year, according to PYMNTS.

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