MetaMask enables direct crypto purchases in Nigeria

March 21, 2023 Coin Telegraph

Crypto investors in Nigeria no longer need to rely on centralized exchanges for buying cryptocurrencies like Bitcoin.

Self-custody cryptocurrency purchases are becoming easier in Nigeria as major crypto wallet MetaMask expands direct onramps with local banks.

MetaMask’s parent firm ConsenSys announced on March 21 a new integration with crypto fintech MoonPay, enabling users in Nigeria to purchase crypto via instant bank transfers.

The new feature is available within the MetaMask mobile and Portfolio Dapp, significantly simplifying the process of buying crypto without using credit or debit cards in Nigeria.

Before the partnership, MetaMask users in Nigeria had access to the MetaMask wallet but the process of buying crypto was costly and time consuming, MetaMask product manager Lorenzo Santos told Cointelegraph. He stated:

“While Moonpay had a card integration feature, about 90% of attempts to buy crypto with a credit or debit card were declined.”

With the new integration supporting local bank transfers, crypto purchases on MetaMask are now faster and cheaper, allowing users to access crypto without sending assets from a centralized exchange.

MoonPay chief product and strategy officer Zeeshan Feroz told Cointelegraph that the integration is estimated to reduce the decline rate for direct crypto purchases in Nigeria from 90% to 30%. He noted that customers of all banks in Nigeria will have access to the service through Bank Transfers, which is a widely used payment method across Nigerian e-commerce businesses.

Even despite the current issues with crypto onramps in Nigeria, the country has emerged as a major market for MetaMask, ranking third in mobile monthly active users, Santos said. “It is also among the top ten countries regarding visitors to metamask.io over the last month,” he added.

According to the Chainalysis 2022 Global Crypto Adoption Index, Nigeria is one of the world’s top 20 ranked countries in terms of cryptocurrency adoption. Some reports suggest that 35% of the Nigerian population aged 18 to 60 owned or traded cryptocurrencies in 2022. That is despite the Central Bank of Nigeria banning banks from servicing crypto exchanges in February 2021.

In December 2022, local media reported that the Nigerian government was preparing to pass a law that would recognize the usage of Bitcoin(BTC) and other cryptocurrencies as a means to keep up to date with “global practices.”

Nigerian Central Bank Unveils Open Banking Guidelines

March 12, 2023 Bitcoin.com

Nigerian president-elect aims to use blockchain technology in the banking sector

March 10, 2023 Coin Telegraph

Banking

The Nigerian president-elect wants to review existing SEC digital asset regulations to stimulate economic growth.

Nigerian President-elect Bola Tinubu has recently released a manifesto that, if implemented, would enable the use of blockchain technology and cryptocurrencies in the nation’s banking and finance sector.

The manifesto suggests reviewing existing Nigerian Security Exchange Commission (SEC) regulations on digital assets to make them more business-friendly. The new regulation provides a framework for regulating digital assets like cryptocurrencies and other digital tokens in Nigeria.

The suggested regulations would require digital asset companies to register with the SEC and mandate that all digital asset offerings and investments comply with SEC regulations.

*Nigeria’s President-elect, Bola Tinubu.*

In the manifesto, Tinubu said: “We will reform the policy to encourage the prudent use of blockchain technology in banking and finance, identity management, revenue collection and use of crypto assets. We will establish an advisory committee to review SEC regulation on digital assets creating a more efficient and business-friendly regulatory framework.”

Some cryptocurrency enthusiasts have criticized existing regulations for lacking provisions allowing crypto users to transact with their local banks.

this existing SEC regulation on crypto in Nigeria is really not letting crypto users make transactions with banks.
— Son of Timothy (@ObiUcheUzoije) March 7, 2023

The published paper also aligns with the Central Bank of Nigeria’s (CBN) eNaira — the country’s central bank digital currency — and plans to expand the adoption of the currency, which has not lived up to expectations.

The government hopes the proposed reform to SEC regulations will help attract more investors in the digital and economic sectors and stimulate economic growth.

Tinubu said, “We will also encourage the CBN to expand the use of our digital currency, the eNaira.”

The manifesto’s release coincides with Nigerians’ increasing crypto adoption, which is among the highest in the world.

Nigerians’ interest in crypto is reflected in the CBN’s milder position toward stablecoins. The bank recently published a research report titled “Nigeria’s Payment System Vision 2025,” exploring the creation of a new framework to introduce a stablecoin in Nigeria.

Naira redesign no more: President’s directive canned by Nigerian Supreme Court

March 6, 2023 Coin Telegraph

Coin Telegraph

The Supreme Court of Nigeria says no to redesigning the naira, ruling that the old banknotes will remain in circulation.

The Supreme Court of Nigeria has ruled that the old 200, 500 and 1,000 naira notes remain in circulation until Dec. 31, 2023, effectively nullifying the naira redesign previously announced by Nigerian President Muhammadu Buhari. The introduction of redesign sought to phase out the use of the old naira notes.

A seven-member panel of the court, led by John Okoro, said in a unanimous judgment that President Buhari issued the directive without consultation.

The court said the federal government should have consulted with the state government through relevant bodies, including the National Council of States and the National Economic Council, before embarking on such a project.

The Supreme Court went on to declare Buhari’s directive withdrawing the old notes from circulation as illegal and an affront to the 1999 Constitution. The court also issued another order nullifying it and extended the legal tender status of the currency notes until Dec. 31.

*A comparison between the old naira banknotes (left) and the canceled new notes (right)*

The pronouncement is among nine declarations and orders issued by the Supreme Court in a judgment on the suit filed by some state governors challenging the president’s directive.

In late 2022, Buhari ordered the withdrawal of the 200, 500 and 1,000 naira notes by Jan. 31, 2021 after introducing the newly designed versions of the banknotes, which were in short supply.

The directive, described as a “demonetization policy” by some state governors opposed to it, has created a scarcity of banknotes, creating disruption in the financial system and hardship for millions of citizens.

The inability to access cash due to the scarcity of banknotes also affected many businesses.

With an already existing pegged maximum ATM withdrawal amount of 20,000 naira ($43), this has also affected crypto users in Nigeria who want to change tokens to fiat for local business transactions and day-to-day expenditures.

However, this new ruling by the apex court has shed hope on the availability of cash for transactions.

Anti-CBDC bill in the US, no algo stablecoins for Canada: Law Decoded, Feb. 20–27

February 27, 2023 Coin Telegraph

CBDC

United States Representative Tom Emmer introduced legislation in the U.S. House of Representatives that could prevent the Federal Reserve from issuing a central bank digital currency.

Last week was relatively calm regarding enforcement news but brought some peculiar local developments in regulation. United States Representative Tom Emmer introduced legislation in the U.S. House of Representatives that could prevent the Federal Reserve from issuing a central bank digital currency (CBDC). According to the Minnesota lawmaker, the bill could prohibit the Fed from issuing a digital dollar “directly to anyone,” bar the central bank from implementing monetary policy based on a CBDC, and require transparency for projects related to a digital dollar.

The Canadian Securities Administrators published a notice describing new commitments it expects from crypto asset trading platforms seeking registration in Canada. The new commitments touch on issues that include segregation of assets, leverage, determination of capital, transparency and others. But, most notably, it anticipates a ban on algorithmic stablecoins.

In a joint statement by three U.S. federal agencies, the banking sector was advised against creating new risk management principles to counter liquidity risks from crypto-asset market vulnerabilities. The Board of Governors of the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency released a statement reminding banks to apply existing risk management principles when addressing crypto-related liquidity risks.

By July 2023, The Financial Stability Board, the International Monetary Fund (IMF) and the Bank for International Settlements will deliver papers and recommendations establishing standards for a global crypto regulatory framework. The announcement was made by representatives of the 20 biggest economies of the world, collectively known as the G20.

IMF says no crypto as legal tender

The IMF’s executive board endorsed a crypto asset policy framework that did not grant crypto assets an official currency or legal tender status. The “Elements of Effective Policies for Crypto Assets” paper develops a framework of nine policy principles that address macro-financial, legal and regulatory, and international coordination issues. According to the first principle, safeguarding monetary sovereignty and stability, “do not grant crypto assets official currency or legal tender status.”

Emojis count as financial advice and have legal consequences

The United States District Court judge for the Southern District of New York ruled that emojis like the rocket ship, stock chart and money bags indicate a financial return on investment. In his decision on Dapper Labs’ motion to dismiss the amended complaint alleging that its NBA Top Shot Moments violated security laws, federal judge Viktor Marreo wrote: “And although the literal word ‘profit’ is not included in any of the tweets, the ‘rocket ship’ emoji, ‘stock chart’ emoji, and ‘money bags’ emoji objectively mean one thing: a financial return on investment.”

SEC files objection to Binance.US bid for Voyager assets

The U.S. Securities and Exchange Commission (SEC) has objected to Binance.US’ move to acquire over $1 billion of assets belonging to the defunct cryptocurrency lending firm Voyager Digital. The SEC is formally investigating whether Binance.US and related debtors violated anti-fraud, registration and other provisions of the federal securities laws. The agency noted particular concern around the security of assets through the planned acquisition. According to the regulator, the information provided in the planned purchase of Voyager assets fails to adequately outline whether Binance.US or affiliated third parties will have access to customer wallet keys or control over anyone with access to such wallets.

Nigeria in talks with NY-based company for CBDC revamp

After multiple attempts to create an efficient digital currency, the Central Bank of Nigeria is turning to a New York tech firm to revamp the underlying technology. According to sources close to the matter, the Nigerian financial authority has discussed the plans to develop a new and improved system with the New York-based technology firm R3. Although it is one of the first countries to have launched a CBDC, Nigeria’s eNaira got off to a sluggish start, with low adoption among the population. According to some reports, the ambitious project is “crippled,“ with only 0.5% of Nigerians using the CBDC.

Report: Chipper Cash Lays Off More Workers — Crypto Department Still Operational, Says CEO

February 23, 2023 Bitcoin.com

Bitcoin Lightning Network growth is organic, coming from real-world adoption

February 22, 2023 Coin Telegraph

Africa

Bitcoin Lightning Network adoption receives a boost with the launch of USD payments and decentralized social media platform, Nostr.

Bitcoin’s Lightning Network (LN) capacity recently surpassed an all-time high of 5,000 BTC.

The Lightning Network is a neutral protocol built on top of Bitcoin and currently it does not have a “native” token attached to it like many decentralized finance platforms.

Although the Lightning Network’s total liquidity is less than 0.5% of the ETH in DeFi contracts, the uptrend in Bitcoin’s LN capacity versus a downtrend in the amount of ETH locked in smart contracts is encouraging for LN development.

*Total ETH locked in DeFi contracts (top) and total BTC in Lightning Network channels (bottom). Source: DefiLlama*

While the liquidity on the LN has been rising consistently, the number of channels on the peer-to-peer network dropped drastically in November following the FTX collapse. It could be due to an exodus of miners operating LN nodes besides running mining clients.

However, the likely end of miner capitulation and the rise of Bitcoin-based applications like NFTs could mark an end to LN channel capitulation. Since the start of 2023, over 2,000 new channels have been added to the network.

*Lightning Network number of channels. Source: glassnode*

A Valkyrie Investments report stated that LN adoption was picking up speed in emerging markets like South America and Africa, primarily due to efforts of the LN mobile payment application, Strike.

In December 2022, the firm launched an LN-based remittance service in Africa. The service offers no-cost transfers from the U.S. to Africans in Nigeria, Ghana and Kenya. Later, Strike announced a similar program in the Philippines.

*LN capacity and important chronological events. Source: Valkyrie*

More recently, the firm announced dollar payments using LN, where users can potentially send dollars from the Strike’s cash balance to savings and VISA-enabled accounts. The app will convert USD to BTC in the background and convert to USD at the destination. Since LN is fast and cheap, the risk due to Bitcoin’s price volatility is minimal.

The cost of international payments from the U.S. can rise as high as $45 per transaction, with transfers taking hours or sometimes days. Thus, users could start preferring Strike-based payments over traditional remittance channels.

A recent report from Marty Bent found that the LN payments have risen this year on the top Lightning Network wallets, Wallet of Satoshi. Moreover, a podcasting platform, Podcasting 2.0, that accepts LN payments also recorded an uptick in tips sent to creators.

Nostr is boosting LN adoption

Another factor influencing the adoption of LN is the launch of Nostr. According to the protocol's Github page, Nostr is a simple, open protocol that enables global, decentralized and censorship-resistant social media. The protocol allows social media applications to be built on it.

Damus, a Twitter lookalike, implements Nostr with an IOS and Android application. The idea of an open and free social media network reverberates the strongest in the crypto space. Bitcoin pioneers like Jack Dorsey and Adam Back have strongly endorsed Nostr.

Besides similarities in ideology, Nostr can boost LN adoption as Damus has integrated various LN wallets like Wallet of Satoshi, Strike, BlueWallet, and others. A report from LN analyst, Kevin Rooke, cited that over 600,000 users signed up on Nostr. This could help onboard users to LN as Nostr inherently supports the Bitcoin payment network through Nostr Zap.

The Lightning Network is a neutral protocol built on top of Bitcoin, with no token attached to it, avoiding speculation. There is a potential for yield for LN nodes as fees for facilitating transactions and providing liquidity. However, in the current state, the earnings are negligible. Hence, the Lightning Network's growth appears organic and well-positioned to become the leading global payment network, which prominent personalities in this space have predicted.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

eNaira is ‘crippled‘: Nigeria in talks with NY-based company for revamp

February 21, 2023 Coin Telegraph

Africa

After multiple attempts to create an efficient digital currency, the Central Bank of Nigeria is turning to a New York tech firm to revamp the underlying technology.

The Central Bank of Nigeria (CBN) continues to develop its central bank digital currency (CBDC), the eNaira, but this time it’s calling for backup.

According to a Feb. 21 Bloomberg report, the CBN is in talks with new “technology partners” to develop a new and improved system to manage the eNaira.

According to sources close to the matter, the Nigerian financial authority has discussed these plans with the New York-based technology firm R3.

New software for the eNaria will be created to allow the CBN to have complete control over the initiative; however, the unnamed source said the matter is confidential.

The effort to create the eNaira began in 2021 with the help of the financial software company, Bitt. According to the report, the new partner won’t immediately take Bitt’s role but will help phase in total control for the Nigerian central bank.

In a statement, Bitt said it is aware that the CBN works with various partners for its technological innovations. It confirmed that it still works closely with the CBN and is “currently developing additional features and enhancements.”

Although it is one of the first countries to have launched a CBDC, Nigeria’s eNaira got off to a sluggish start, with low adoption. According to some reports, the ambitious project is “crippled,“ with only 0.5% of Nigerians using the CBDC.

In January, a Nigerian innovator launched the country’s first active Bitcoin Lightning node. Shortly before that, the government announced its plan to create a legal framework for stablecoins and Initial coin offerings.

Nigeria is one of more than 90 countries exploring the use of CBDCs. Others include Russia and Japan, both of which have plans to roll out their currencies before the summer. The city of San Francisco is also looking into the possibility of developing a CBDC system.

However, there is active pushback against CBDCs from activists who call them “surveillance” tools.

Nigerian City of Lagos Among the World’s Top 20 Crypto Hub Cities — Study

February 8, 2023 Bitcoin.com

Bitcoin pumped 43% in January 2023! What to expect in February — Watch The Market Report live

January 31, 2023 Coin Telegraph

Coin Telegraph

On this week’s episode of The Market Report, Cointelegraph’s resident experts discuss what the second month of 2023 could potentially hold for BTC.

This week on The Market Report, the resident experts at Cointelegraph discuss Bitcoin’s (BTC) impressive January rally and whether there are any indicators that suggest it could continue in February.

We start off this week’s show with the latest news in the markets:

Best January since 2013? 5 things to know in Bitcoin this week

After sealing its highest weekly close in almost six months, BTC/USD remains over 40% up year-to-date, with the monthly close just 48 hours away — can the gains hold? Throughout, concerns have called for an imminent come-down, and even new macro BTC price lows as disbelief swept the market. That grim turnaround has yet to come to fruition, and the coming days could yet turn out to be a crucial period for Bitcoin’s long-term trend. It’s going to be a busy week for the markets as the United States Federal Reserve will decide on its next rate hike this week, with Fed Chairman Jerome Powell giving much-anticipated commentary on the economy and policy. The European Central Bank will make the same decision a day later. Add to that the psychological pressure of the monthly close, and it is easy to see how the coming week could be more volatile in Bitcoin’s recent history. So, buckle up as our experts break down the five key things to know in Bitcoin this week.

Bitcoin premium hits 60% in Nigeria as country limits ATM cash withdrawals

At the time of writing, the price of 1 BTC on the Nigerian crypto exchange NairaEX is 17.2 million nairas, equating to a whopping $37,341. That is a hefty premium over the current market price of Bitcoin, around $22,874 at the time of writing. It comes as the Central Bank of Nigeria has continued to impose limits on ATM cash withdrawals amid an ongoing effort to accelerate its shift to a cashless society. Will this have any impact on the price of Bitcoin, considering more and more people will be flocking to purchase the top digital currency, and how will it impact the rest of the markets?

Elon Musk wants Twitter payments system built with crypto in mind

Twitter chief Elon Musk has reportedly instructed his developers to build the platform’s payments system in such a way that crypto functionality can be added in the future. The payment feature will support fiat currencies to start with but will have the capability to accommodate cryptocurrencies if the opportunity arises. For now, things are still pretty vague as to whether the system will involve blockchain or crypto technology, but people are hopeful considering the Twitter CEO has had a lot of influence in the crypto space.

Our experts cover these and other developing stories, so make sure you tune in to stay up-to-date on the latest in the world of crypto.

Next up is a segment called “Quick Crypto Tips,” which aims to give newcomers to the crypto industry quick and easy tips to get the most out of their experience. This week’s tip: How do you evaluate a crypto project?

Market expert Marcel Pechman then carefully examines the Bitcoin and Ether (ETH) markets. Are the current market conditions bullish or bearish? What is the outlook for the next few months? Pechman is here to break it down.

Lastly, we’ve got insights from Cointelegraph Markets Pro, a platform for crypto traders who want to stay one step ahead of the market. Our analysts use Cointelegraph Markets Pro to identify two altcoins that stood out this week, so make sure to tune in to find out which ones made the cut.

Do you have a question about a coin or topic not covered here? Don’t worry — join the YouTube chat room and write your questions there. The person with the most interesting comment or question will have a chance to win a one-month subscription to Markets Pro worth $100.

The Market Report streams live every Tuesday at 12:00 pm ET (5:00 pm UTC), so be sure to head on over to Cointelegraph’s YouTube page and smash those Like and Subscribe buttons for all our future videos and updates.

Nigeria

IMF says no crypto as legal tender

Emojis count as financial advice and have legal consequences

SEC files objection to Binance.US bid for Voyager assets

Nigeria in talks with NY-based company for CBDC revamp

Nostr is boosting LN adoption

Share this video