Binance and Nigeria are working together to launch a digital economic zone in Nigeria. This digital economic zone, similar to the virtual free zone in Dubai, will be fueled by blockchain tech. 

Digital Economic Zone To Support Blockchain And Crypto Businesses

In 2022, Binance has been expanding to various parts of the world, preaching crypto and blockchain adoption. The upcoming digital economic zone in Nigeria will support blockchain and crypto-related businesses.

Recently, the Nigeria Export Processing Zones Authority (NEPZA) met with Binance and Talent City, a tech firm. The purpose of the meeting was to discuss the development of a digital city in Nigeria, the “Virtual Free Zone.”

Adesoji Adesugba, the MD for NEPZA, said this is the first of its kind in West Africa. He likened the zone to that of Dubai, which aims to provide crypto-friendly regulations, laws, and tax benefits for crypto-based businesses. 

Triple A’s report noted that the crypto adoption in Nigeria is high, with more than 22 million active crypto users. Adesugba believes this development would accelerate the country’s economic growth.

Additionally, Adesugba said this move is part of the country’s agenda to drive economic development. The country also plans 5o foster crypto and blockchain technology in the region.

“We want to widen the economic opportunities and technologies for our people. This would, in turn, boost the country’s economy and provide more jobs for the citizenry,” President Buhari stated.

Crypto Adoption And Usage In Nigeria 

Meanwhile, crypto adoption in Africa has been on the rise in the past few years. One major factor fueling the adoption is the high rate of inflation and inadequate financial policies. Several users have switched to crypto to safeguard their wealth against inflation.

As per a survey by CoinGecko, Nigerians are very obsessed with cryptocurrency. They have searched for the terms “buy crypto” and “cryptocurrency” more than more nations. 

Additionally, Paxful, a peer-to-peer crypto exchange platform, revealed that Nigerians formed a huge part of the company’s global market. In H1 2022, Nigeria’s trading volume on Paxful was about $400 million.

In H1 2021, Nigeria’s trading volume on Paxful was over $760 million. Last October, the country launched its CBDC, the eNaira. 

The central bank of Nigeria is currently working to increase the usage and adoption of the digital currency. The eNaira’s purpose is to foster financial inclusion for the country’s unbanked population.

Recently, the Nigeria Stock Exchange disclosed its intention to build a blockchain-powered exchange platform in 2023. This is an effort to improve service delivery and investment on the platform.