By 2023, the Nigerian Exchange Will Use Blockchain to Settle Trades
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“For a lot of young and upcoming Nigerians, that is the kind of technology they adopt and we want to see how we can deploy it to grow our market,”
The idea is being implemented after a bitcoin market crash caused by the Terra blockchain's failure in May. Since its all-time high in November, Bitcoin has lost more than half its value.
Cryptocurrency Transactions Outside of the US
According to Paxful, a bitcoin marketplace, young Nigerians account for the largest volume of cryptocurrency transactions outside the US. But they have mostly neglected the local exchange. In the first three months of this year, Nigerians transacted $185 million in bitcoin on Paxful. Which is a quarter of all transactions. According to Popoola, the Nigerian bourse would partner with a technology business and obtain regulatory clearance before launching in 2023.
"Blockchain technology can facilitate various segments of capital markets. Whether around the manufacture of products or to facilitate exchange for the trading of financial assets,"
Popula believes that digital transactions attract young buyers looking for a variety of products. This will help in getting quick and easy access to the market. The Nigeria arm of MTN Group Limited issued the stock exchange's first fully electronic share offering last year. That was 1.2 times higher subscriptions with 85 percent of investors under 40 years of age.