Nigerian Economist: cryptocurrencies are here to stay

Nigerian economist Gospel Obele has called for uniform regulations for regulating cryptocurrencies so that they can complement digital currencies of the Central Bank.
Gospel Obele believes that regulated cryptocurrencies could be used on par with digital currencies being developed by African central banks. Obele suggested that the adoption of a single digital currency in the African Continental Free Trade Area is unlikely in the short term, and would be very difficult to implement.

Nigerian Economist: cryptocurrencies are here to stay

According to Obele, some African central banks have just started planning to launch their own digital currencies, while private cryptocurrencies are already being used to make cross-border transfers. Therefore, if a clear oversight mechanism for cryptocurrencies is developed, they could become a reasonable alternative to state-owned stablcoins, facilitating international trade.
For example, bitcoin is very popular in Nigeria because of the shortage of foreign currency. It has helped some foreign trade businesses stay afloat. However, because of the growing use of cryptocurrencies, many central banks are implementing prohibitive measures, not allowing banks to service the accounts of cryptocurrency traders or digital asset firms.
"Cryptocurrencies have come to stay. So instead of restricting their use, central banks need to understand the technology behind how digital currencies function. We need to learn the basics of blockchain, then banks will be able to become participants in the 'cryptorevolution,'" Obele said.
The Economic Community, which includes fifteen West African countries, recently raised concerns about the growing popularity of cryptocurrencies in the region. The community believes that cryptocurrencies should not be accepted as a means of payment because of their high volatility and market speculation.
FX24

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