ABCON Plans New Digital Market To Buy, Sell Dollar, Unveils Name, Seeks Govt Support

ABCON Plans New Digital Market To Buy, Sell Dollar, Unveils Name, Seeks Govt Support

  • Bureau De Change (BDC) operators are looking to introduce a new digital currency market to trade forex
  • They believe the new digital market will help improve the performance of the naira in the foreign exchange market
  • The BDC hopes this new currency will serve as an alternative to the strong appetite of Nigerians for digital currency

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Association of Bureaux De Change Operators of Nigeria (ABCON) has announced plans to introduce a digital currency market model named 'Koletyomoni'.

ABCON president, Aminu Gwadabe, disclosed this in a statement made available to journalists after a visit to the Securities and Exchange Commission (SEC)

Read also

CBN finally takes action after FG withdraws cybersecurity levy

ABCON moves to improve aaira to dollar exchange rate
ABCON wants to digitalise dollar Street dollar Photo credit: Bloomberg/contributor
Source: Facebook

He was at SEC to congratulate Dr Timi Agama, the newly appointed director general of the commission.

ABCON plans new digital currency

According to Gwadabe, ABCON needs the support of the SEC to achieve its objective with the digital platform to buy and sell forex.

He noted that the association has invested in the requisite technology to ensure the continued existence of the business and preserve the integrity of the subsector.

Punch reports that he called for support from the SEC, noting that the future of BDC business is a digital currency.

His words:

"There were millions of Nigerians dealing in digital currency and the number is rising by about nine per cent with a huge market of $9bn annually and there are thousands of multichannel virtual currency forex platforms.”

Read also

BDC operators send important message to SEC as Binance, Kucoin suspend naira trading

In response, the SEC DG said:

“I understand that ABCON is desirous of setting up a digital market platform with the intention to be part of the emerging digital currency ecosystem in Nigeria.
We at the SEC are open to helping the sector grow for the love of the country therefore there will be meetings with the relevant departments of the SEC to detail methods and strategies that will strengthen the Naira through necessary innovative ideas as shared by ABCON.”

The SEC's director-general emphasised the implementation of new regulations to support intellectuals' growth of local digital platforms.

Consequently, the SEC will collaborate with ABCON to accomplish these goals.

Agama also recommended expediting the completion of ABCON's digital market model, Koletyomoni, and promptly submitting it to the SEC technical team for examination and timely evaluation.

FG addresses naira to dollar exchange rate

Legit.ng earlier reported that Ben Akabueze, the director-general of the federation's budget office, said the naira would strengthen in value in the foreign exchange market in 2024.

Read also

Court clears access, UBA, GTB, other banks to demand customers’ social media account, gives reason

Akabueze said this would be possible as the country expects an increase in dollar supply.

He noted that the Tinubu-led government expects the reforms to start yielding results in 2024, which is why it maintains a positive stance on the exchange rate.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

Online view pixel