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17 January 2023

Governments Of El Salvador And Nigeria Take Steps Toward Crypto Adoption

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The "Nigeria Payments System Vision 2025" report was recently published by the Central Bank of Nigeria ..
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According to reports, this week El Salvador, which became the first country to use bitcoin as legal tender in 2021, passed legislation providing the framework for a bitcoin-backed bond called the "Volcano Bond" that reportedly will be used to pay down sovereign debt, create bitcoin mining infrastructure, and fund the construction of a proposed "Bitcoin City," a renewable crypto-mining hub powered by hydrothermal energy from the nearby Conchugua volcano. The bonds have been targeted to raise $1 billion for the country, with half of it going into building the special economic zone. The bill also includes a legal framework for non-bitcoin digital assets and creates a new regulatory agency that will be in charge of applying securities laws and providing protection from bad actors.

The "Nigeria Payments System Vision 2025" report was recently published by the Central Bank of Nigeria (CBN). In it, the CBN declares Nigeria's readiness to accept private stablecoins, says that stablecoins are likely to become a successful payment mechanism in the country, and considers the development of a regulatory framework for stablecoin use. The report also addresses the regulation of initial coin offerings (ICOs) and, while acknowledging the current absence of ICO regulation and related investor losses, notes the potential for responsible ICO fundraising, peer-to-peer lending and crowdfunding.

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