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Nigeria and Binance looking to develop crypto-friendly economic zone

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The Nigerian government announced that it had initiated various early stage meetings with cryptocurrency exchange platform Binance inorder to create a Special Economic Zone whose primary objective would be to bolster cryptocurrency and blockchain related activities in the area. The proposed partnership is looking forward to develop a digital city which would be Crypto friendly and similar to the “Virtual Free Zone” developed in Dubai.

The Nigeria Export Processing Zones Authority (NEPZA) held early stage joint talks with Binance and tech infra organization Talent City wherein they discussed the proposed digital city. The digital city will be referred to as “Virtual Free Zone”.

The managing director of NEPZA declared that the proposed city would be primarily developed in the West African region. The zone will function parallel to various virtual zones wherein laws are crypto friendly for various businesses. Apart from that, various laws and regulations in the area would be directly beneficial to crypto related businesses.

Speaking to the press Finance executives declared that the sole motive behind the project was to spearhead long term digital growth through a digital mechanism. Also the Special Economic Zone will bolster the economy of Nigeria while widening employment opportunities for various Nigerian citizens.

The early stage meetings were held in Dubai wherein Binance executive directors and various Nigerian officials presided over the meeting. Nigerian officials declared that the special economic zone was a significant part of the Nigeria economic development and the Nigerian president himself was concerned about various developments in the project.

If we have a look at the statistics Nigeria has a very high rate of cryptocurrency adoption with the country being home to 22 million cryptocurrency owners. The primary catalyst behind such a rampant cryptocurrency adoption can be attributed to the fact that the country has a severely deteriorating financial system. Apart from that unstable government policies as well as rising inflation has pushed cryptocurrency adoption among masses. A recent survey declared Nigeria as a Cryptocurrency obsessed nation wherein “Cryptocurrency” and “buy crypto” turned out to be the most searched terms online.

Apart from this the Nigerian government has been immensely serious about cryptocurrency adoption wherein they launched Nigeria’s first central bank digital currency (CBDC). The project is currently in its second phase and is planning to onboard various unbanked citizens as well as strengthen economic growth across the country.

Disclaimer: The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry. Please do your own research.