As part of the country’s shift towards a cashless society, Nigeria is making plans to push a law that will legalize the use of bitcoin and cryptocurrencies, as opposed to its previous stance on the industry.

As reported by a local newspaper, the chairman of the House of Representatives Committee on Capital Markets and Institutions of Nigeria, Babangida Ibrahim, gave a detailed explanation about how the new law seeks to amend the existing “Investment and Securities Act 2007” so that Bitcoin can be recognized as legal capital for investment.

This development is coming almost two years after the Central Bank of Nigeria banned banks from servicing crypto exchanges. The directive from CBN at that time mandated banks to cease the accounts of any entities or individuals who participated in crypto trading activities.

In spite of the ban, the country has emerged as one of the world’s fastest-growing Bitcoin adopters. And according to a recent report by global research firm Morning Consult, Nigeria has 50% monthly active adult crypto traders, which is the highest in the world. This is because of the devaluation of the naira as many Nigerians have grown an appetite for the asset class, preferring to protect their wealth in Bitcoin and stablecoins.

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