Binance Holdings Ltd. and the Nigerian government are in discussions to create a digital economic zone that would support blockchain technology adoption among businesses in the West African country.
A Nigeria Export Processing Zone Authority will reportedly be created thanks to the agreement between Binance and Talent City in the West African country (NEPZA). According to a tweet from the Nigeria Export Processing Zones Authority, the alliance intends to establish a digital center “akin to the Dubai virtual free zone.” These regions are created to offer tax breaks, supportive legislation, and regulations for the cryptocurrency industry.
The preliminary plans were reviewed on Friday in Dubai at a meeting between the managing Director of NEPZA Adesoji Adesugba, Binance executive director Nadeem Ladki, Talent City CEO Luqman Edu, and NEPZA director Sikiru Lawal.
In order to further encourage the use of cryptocurrencies in the West African area, Adesugba noted that the action would be a component of Nigeria’s goal for economic growth.
He stated that in keeping with the mission of the Authority, the direction of the Honorable Minister, and the economic development goal of President Muhammadu Buhari, the partnership wants to break new ground to broaden economic prospects for the population.
The popularity of cryptocurrencies has risen steadily over the past several years in Africa, driven by a deficient financial system, unpredictable government policies, and inflation.
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According to a new CoinGecko study, Nigerians are the most fascinated with cryptocurrencies, having searched for the phrases “cryptocurrency” and “purchase crypto” more frequently than the citizens of any of the other 14 nations surveyed.
Also, in a survey released by Chainalysis in September of last year, the crypto markets in Nigeria, Kenya, Tanzania, and South Africa collectively experienced growth of 1,200 percent, growing to a market worth of $105.6 billion in a year.
In 2021, according to research company Triple-A, more than 13 million people in Nigeria alone held cryptocurrency. This equates to 6.3% of Nigeria’s whole population.
Therefore, blockchain-focused economic zone in Nigeria might assist the region’s growing crypto community go further into the field by providing start-ups and employment.
Meanwhile, the government passed laws for the trading of digital assets this year, and the Nigerian Exchange expects to launch a blockchain-enabled platform the next year to expand trading in the market.
Binance has attempted to extend its activities by partnering with several national governments since its inception. For instance, in December of the previous year, Binance and the Dubai World Trade Center signed a Memorandum of Understanding to establish a new international virtual asset ecosystem and transform Dubai into a hub for bitcoin and cryptocurrency-related goods and services. It signed a Memorandum of Understanding (MoU) with Kazakhstani authorities in May 2022 to establish a virtual asset market there. Binance recently signed a similar major agreement with the Korean city of Busan. The exchange will presumably assist Busan in its blockchain development efforts with technology and infrastructure.
The latest Binance collaboration would support Nigeria’s effort to use digital technologies to diversify its oil-dependent economy. The nation, which has a lively young, tech-savvy populace, would profit from a varied economy.