Binance, the world’s largest cryptocurrency exchange, has entered into talks with Nigeria, Africa’s biggest economic zone, to build a digital economic area similar to that of Dubai.
Binance Partners with Nigeria
Binance Holdings Ltd. has entered into talks with the federal government of Nigeria to establish a digital economic zone that will help entrepreneurs fast-track blockchain technology in the West African nation.
According to reports, the partnership will see Binance and Talent City help the West African nation build an Export Processing Zone Authority (NEPZA). Binance is also working with the South Korean city of Busan to build a similar zone for the city.
Building Africa’s First Virtual Free Zone
Managing Director of NEPZA Adesoji Adesugba has said that the overall aim of the Binance partnership is to build the first digital hub in Africa that will function in a way “similar to the Dubai virtual free zone.”
Assuming that it is modeled directly after Dubai’s virtual free zone, NEPZA will provide crypto-friendly laws, regulations, and tax incentives for crypto businesses. Adesugba also projects that the zone will help “widen employment opportunities” for Nigerian citizens.
According to Adesugba, NEPZA’s goal is to “engender a flourishing virtual free zone to take advantage of a near trillion dollar virtual economy in blockchains and digital economy.”
On the Flipside
- Nigeria has not always been a crypto-friendly nation, with its Apex Bank enacting a blanket ban in 2021, restricting banks from facilitating cryptocurrency transactions of any kind.
Why You Should Care
With over 22 million current cryptocurrency users, the move from NEPZA could serve to further develop Nigeria’s growing digital economy, allowing it to compete with more established countries.
Find out more about Nigeria’s crypto ban in:
Central Bank of Nigeria Steps Into Fight Against Digital Currencies
Read about the country’s CBDC move below:
Nigeria Upgrades CBDC to Steer People Away from BTC and Altcoins