Appzone Switch CEO on how Nigeria's payment landscape is evolving

Nigeria's adoption of the eNaira, a blockchain-based digital currency, marks a significant milestone in the country's entry into the digital payment processing system landscape. Elendu Uche, the CEO of Appzone Switch, recently joined CNBC Africa to discuss how the payments landscape is evolving in Nigeria. According to Uche, blockchain technology has come a long way from its initial adoption by people looking to upgrade outside of traditional financial systems. Nigeria witnessed an increase in blockchain transactions, with over $300 million worth of transactions done in 2020. This growth led the regulatory authorities, particularly the Central Bank of Nigeria (CBN), to take notice and recognize the benefits of blockchain technology in revolutionizing payment systems. The CBN, known for its progressive stance, sees blockchain as a way to disintermediate the flow of value, making transactions more efficient and reliable. Uche highlighted the fragmented nature of Nigeria's financial institutions and the need for seamless interoperability, which blockchain technology can address by simplifying the flow of value within the ecosystem. The CEO emphasized the cost-effectiveness and reliability that blockchain offers, making it an attractive solution for the evolving payment landscape in Nigeria. Looking ahead, Uche discussed the future of blockchain technology in financial services and payments. He envisioned a scenario where economies without mature electronic payment infrastructures could leapfrog ahead by adopting blockchain technology for in-country transactions. This move would make transactions more cost-effective and encourage broader adoption due to increased efficiency and seamlessness. Uche also foresaw the potential for blockchain to facilitate cross-border intra-African transactions without depending on the US dollar, creating a platform for seamless trade within the continent. Appzone Switch is investing in creating a platform to enable intra-African transactions by providing a digital unit of account backed by African currencies. This initiative aims to increase the volume of trade and value exchange within African countries, fostering self-sufficiency and economic growth. While discussing the potential proliferation of platforms in the blockchain space, Uche acknowledged the concern about platform overlap and the hindrance it could pose to achieving seamless trade. However, he reassured that blockchain technology has made significant strides in interoperability, allowing multiple networks to function together seamlessly. Tech companies like Cosmos have contributed to solving interoperability challenges, ensuring that various platforms can coexist and facilitate uninterrupted transactions cost-effectively. Uche emphasized the importance of early adoption of interoperability standards by fintech innovators to address potential platform redundancy effectively. As Nigeria continues to embrace digital innovations in its payment landscape, the adoption of blockchain technology holds promise for transforming financial services and promoting economic growth in the region.