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Crypto Investors in Nigeria Warned by Referred as Gamblers

Bitcoin, cryptocurrency, blockchain, Nigeria, Nigeria Central Bank, World Economic Forum

Bitcoin changed the global image of cryptocurrency. The rise in its value has prompted many people to invest their money in it. However, not all people globally are happy with a drastic rise in the value of the bitcoin. Various institutions and continue to warn their citizens about the volatility of the cryptocurrency. The Nigeria Central Bank referred to those investing in bitcoin as gamblers. It warned them that they should not expect any support from the bank. There was a call for all the investors to be careful with the cryptocurrency market.

As much as bitcoin is becoming much popular and valuable, it might burst anytime like a bubble. Sometimes, the cryptocurrency encourages other criminal activities. The bank has been discouraging about the use of bitcoin and other cryptocurrencies. It has issued out a circular to all money lenders. The circular requests them to avoid trading in bitcoins. They also discourage the possession of cryptocurrencies. It will only be used when banks accept their terms of use.

Nevertheless, the Nigerian foreign investors continue to work against the bank’s demands. The demand for the digital money in the country has also risen. Nigeria is among the biggest crypto economies in West Africa. Nigerian crypto economy is the world’s second largest considering peer-to-peer transactions. This is according to report released by LocalBitcoins. The country has defeated big participants like China and many European nations. The Nigerian P2P transactions went up by 1,500% in 2017. According to a report released by Citigroup in December 2017, bitcoin might reduce in value and vanish.

In case that takes place, Russia will get the largest loss followed by New Zealand and Nigeria in that order. The main concern on the crypto is the influence of money laundry. Some people also use it to fund terrorist activities. The central bank of Nigeria keeps drafting new regulations to help in identification of wallet holders. Therefore, upon identification, the state will account for money invested in cryptocurrency from Nigeria. The world is not talking with one voice on the usage of the cryptocurrency. Many bank leaders and bankers are still not confident with the cryptocurrency.

 

During the World Economic Forum in Davos, British suggested a crackdown on the bitcoin and other cryptos. This comes when Russia rolls out regulations on the crypto space. On the other hand, Japan is also renowned for adopting the digital currency. The Netherlands is one of the countries that are adopting blockchain without bitcoin. South Africa, Germany, France, and China are already using strict regulations against popular exchanges. Many banks in the US have withdrawn back the support for crypto payments using credit cards. Many bankers have also asked people not to get involved in the crypto trade.

The digital currency has gone down after remarks by governments and top bankers. Bitcoin which used to sell at $11,600 went down by 10%. The crypto is struggling to stay at $10,500 which means it can go lower than that at any time. The other cryptos have also been trading lower than before the remarks.

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Written by Denis Opudo

Am an engineer who's a tech blogger, hit me up on dennis@techinafrica.com and we base our discussion on technology in Africa and the rest of the world.
Denis the Tech guru

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  1. Right now it looks like BlogEngine is the best blogging platform available right now.

    (from what I’ve read) Is that what you are using on your blog?

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