The use of blockchain technology can make certain aspects of the financial market easier to navigate, whether this pertains to the production of goods or the trading of those goods on an exchange.
Nigerian Exchange Limited is almost done with the final steps needed to launch a platform for trading. It launching will be in 2023 that will only use blockchain technology.
According to TechEconomy’s the company’s first electronic share offering, which MTN Nigeria issued in the previous year, was 1.2 times oversubscribed, and the majority of the investors were under the age of 40.
However, once it receives approval from the relevant industry regulators by 2023, the Exchange intends to seek a strategic collaboration with a technology company.
The Chief Executive Officer of Nigerian Exchange Ltd Temi Poopola sees blockchain technology as a way to improve the financial market because it enables an “effective way of trading financial assets.”
He also mentioned that its deployment would provide the young investors with easy and quick access to the market,” as the majority of users of cryptocurrency in Nigeria are young people.
Blockchain technology can make certain aspects of the capital market more accessible, like creating new products or making it easier for people to trade on the Exchange.
Cryptocurrency trading hasn’t been backed by the government in Nigeria yet, and the government has told Nigerians severally not to trade. Hence, the CBN issued an order mandating commercial banks within the country not to help with processing any cryptocurrency transactions
The cryptocurrency market is going to be directly involved with the Exchange. In that case, it is required to conduct its business by the regulations of the Security Exchange Commission of Nigeria and the CBN.
The agency pointed to cryptocurrency as a potential threat to the existing monetary system. In the meantime, Nigeria’s Securities and Exchange Commission (SEC) said it is ready to protect e investors.