By 
Obi Emetarom, CEO of Zone, is championing the adoption of regulated blockchain technology as a transformative solution for Nigeria’s financial services industry. In his latest whitepaper, Regulated Blockchain: Infrastructure for Regulated DeFi, Foundation for a Golden Age in Finance, Emetarom highlights how this technology can streamline financial operations, enhance security, and strengthen regulatory compliance within the country’s financial ecosystem.
Addressing Challenges in Traditional and Decentralized Finance
Traditional financial systems (TradFi) continue to face high costs, slow processing times, and regulatory complexities. According to a World Bank report, global remittance fees stood at 6.2% in 2023, significantly exceeding the 3% target set by the UN Sustainable Development Goals (SDGs). These inefficiencies make financial transactions expensive and limit access for millions of Nigerians.
On the other hand, decentralized finance (DeFi) offers a more efficient alternative but struggles with trust, security vulnerabilities, and a lack of regulatory oversight. In 2023 alone, crypto-related fraud and hacking incidents resulted in losses exceeding $1.8 billion, according to Chainalysis.
The Potential of Regulated Blockchain
Regulated blockchain technology integrates the efficiency and transparency of blockchain with robust regulatory frameworks, offering a secure and compliant infrastructure for financial services. Unlike traditional cryptocurrencies that operate outside government control, regulated blockchain enables banks, fintech firms, and payment providers to leverage blockchain for faster, more affordable, and legally compliant transactions.
Key Benefits of Regulated Blockchain
- Seamless Cross-Border Transactions – Reduces remittance costs and eliminates processing delays.
- Enhanced Security – Enables real-time fraud prevention and automated compliance checks.
- Greater Financial Inclusion – Expands access to financial services for underserved individuals and businesses.
- Regulatory Transparency – Strengthens oversight and monitoring by financial regulators.
A Call for Industry-Wide Adoption
Emetarom is urging policymakers, financial institutions, and tech innovators to embrace regulated blockchain as the future of financial services. By embedding compliance mechanisms directly into blockchain networks, this approach ensures that Nigeria’s financial sector aligns with global regulatory standards while promoting economic growth.
“The financial industry cannot afford to rely on outdated models,” Emetarom states. “Regulated Blockchain Infrastructure provides the foundation for a future where financial services are efficient, accessible, and built on trust.”
As Nigeria continues its digital transformation, regulated blockchain solutions could play a pivotal role in reshaping the financial landscape, fostering innovation, and ensuring a more inclusive financial ecosystem.
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