• Latest
  • Trending
ABC of cryptocurrencies and implications of CBN ban

ABC of cryptocurrencies and implications of CBN ban

2 years ago
EFCC arraigns Kogi governor’s wife, nephew over alleged N3bn fraud

EFCC arraigns Kogi governor’s wife, nephew over alleged N3bn fraud

5 hours ago
Oke Ogun Group calls for calm over fuel, naira scarcity

Oke Ogun Group calls for calm over fuel, naira scarcity

6 hours ago
Atiku denies hiring foreign lobbying firm to unseat Buhari, slams APC

How Atiku will become president- Dele Momodu

9 hours ago
NFIU: No going back on cash withdrawal limit

IMF to CBN: Extend deadline for naira swap policy

9 hours ago
Tinubu hails governors over Supeme Court ruling on naira swap policy

Tinubu hails governors over Supeme Court ruling on naira swap policy

9 hours ago
PERFORMANCE TRACK: Hon Akin Alabi provides quality seedlings to 100 farmers

PERFORMANCE TRACK: Hon Akin Alabi provides quality seedlings to 100 farmers

12 hours ago
NFIU: No going back on cash withdrawal limit

JUST IN: Supreme Court stops FG from enforcing old naira notes deadline

13 hours ago
INEC directs Ondo, Edo offices to reopen over governorship elections

Naira scarcity may disrupt general elections, INEC warns CBN, NSA

16 hours ago
Wike: Why I won’t campaign for Atiku in 2023

Wike backtracks, approves stadium for Atiku’s rally

16 hours ago
APC chieftain: Forces outside our party want to install Emefiele, Lawan as Buhari’s successor

APC chieftain: Forces outside our party want to install Emefiele, Lawan as Buhari’s successor

1 day ago
NCC vice chairman: Telecoms policies increasing digital access, media, knowledge production

Stakeholders hail NCC as AfricaNXT 2023 commences

1 day ago
Protesters attack banks in Ogun amid lingering cash scarcity

Protesters attack banks in Ogun amid lingering cash scarcity

1 day ago
Why Tinubu is not granting live interviews- Keyamo

‘Avoid act capable of causing civil unrest’-Tinubu appeals for calm over fuel, naira scarcity

1 day ago
Fuel/naira scarcity: Protesters block Benin-Ore highway, defy Ondo CP’s warning

Fuel/naira scarcity: Protesters block Benin-Ore highway, defy Ondo CP’s warning

1 day ago
We’re first state to introduce health insurance for retirees- OYSHIA boss

We’re first state to introduce health insurance for retirees- OYSHIA boss

1 day ago
UPDATED: Faces @Newspeak 10th anniversary award ceremony

UPDATED: Faces @Newspeak 10th anniversary award ceremony

1 day ago
For a ‘Bloodless Revolution’ in NIGERIA, By Femi Idowu

For a ‘Bloodless Revolution’ in NIGERIA, By Femi Idowu

2 days ago
PDP Senator: Why I’ll keep supporting Tinubu

PDP Senator: Why I’ll keep supporting Tinubu

2 days ago
  • Contact Us
  • Advertise
Thursday, February 9, 2023
Newspeakonline
  • Home
  • Politics
  • Business
  • Entertainment
  • Technology
  • World
    • Africa
    • Americas
    • Asia
    • Europe
  • Opinion
  • Interview
  • Newspeak ExclusivesNew
No Result
View All Result
  • Home
  • Politics
  • Business
  • Entertainment
  • Technology
  • World
    • Africa
    • Americas
    • Asia
    • Europe
  • Opinion
  • Interview
  • Newspeak ExclusivesNew
No Result
View All Result
Newspeak
UBA
Home Newspeak Exclusives

ABC of cryptocurrencies and implications of CBN ban

Roseline Oladele by Roseline Oladele
February 12, 2021
in Newspeak Exclusives
Reading Time: 4 mins read
299 3
0
ABC of cryptocurrencies and implications of CBN ban
Share on FacebookShare on TwitterShare on WhatsAppShare on Telegram

By Faith Ijeh

RelatedPosts

IMF to CBN: Extend deadline for naira swap policy

JUST IN: Supreme Court stops FG from enforcing old naira notes deadline

Naira scarcity may disrupt general elections, INEC warns CBN, NSA

A new Central Bank of Nigeria directive, dated February 5, 2021,  ordered all deposit money banks, non-bank financial institutions and other financial institutions that have opened windows for dealing in cryptocurrencies or facilitating payments for such currencies to close them down. It also demanded that “persons and/or entities transacting in or operating cryptocurrency exchanges within their systems to ensure that such accounts are closed immediately.”

This followed an earlier directive, in January, warning banks and regulated financial institutions and members of the public to beware of the risks associated with cryptocurrency transactions.

What are cryptocurrencies?
Cryptocurrencies can be defined as digital payments that can be exchanged for goods and services online.
Cryptocurrency, unlike physical cash, exists only in the cyberspace.
It is a phenomenon associated with  recent global digital revolution and it is an encrypted blockchain.
According to recent surveys, as many as 6,700 cryptocurrencies, valued at $890 billion, are being traded publicly.

The first cryptocurrency, Bitcoin, valued today at a staggering $563 billion, was invented by an anonymous Japanese computer buff by the name of Satoshi Nakamoto. Bitcoin is a series of decentralised transactions controlled by blockchain that acts as a foolproof ledger for all transactions. You do not have to know anybody you are trading with. The transactions are guaranteed to be safe and secure.

Other types of cryptocurrencies include Tether, Lite coin, Ehtherum, Polka dot, Chainlink, Bitcoin Cash and many more.

Many in this generation, especially youths, are investing in cryptocurrencies because they like their decentralised character and the fact that they are not susceptible to inflation the way ordinary money is.

Cryptocurrencies are legal in the United States, although several countries have banned their use.  These include China, Iran, Bolivia, Nepal, Bangladesh, Ecuador, Morocco and recently Nigeria.

There is no doubt that cryptocurrencies are volatile and risky. The transactions are irreversible, unlike in regular banking transactions. They are anonymous. There are no regulators. For instance, at the end of the transaction, one could  be doing business with a fraudster, child molester or terrorist.

One of  the world’s greatest investors, Warren Buffett, dismisses cryptocurrencies as a worthless delusion and “right poison squared.” He has always counselled value investors never to invest in what they do not know.

Advantages of Cryptocurrency
1. User Autonomy; Digital currencies allow users more autonomy over their own money than fiat currencies do, at least in theory. Users are able to control how they spend their money without dealing with an intermediary authority like a bank or government.


2. Discretion. Its purchases are discrete. Unless a user voluntarily publishes his Bitcoin transactions, his purchases are never associated with his personal identity, much like cash-only purchases, and cannot easily be traced back to him.


3. Elimination of Banking Fees. Its users are not subject to the litany of traditional banking fees associated with fiat currencies. This means no account maintenance or minimum balance fees or any other fees.


4. Accessibility. It is theoretically available to populations of users without access to traditional banking systems, credit cards and other methods of payment, only with a smartphone or computers

Disadvantages of Cryptocurrency
1. Regulations. Even if we perfect the technology and get rid of all the other problems, until the technology is adopted by federal governments and regulated, there will be increased risk in investing in this technology.


2. Cyber security issues. As a digital technology, cryptocurrencies will be subject to cybersecurity breaches, and may fall into the hands of hackers. We have already seen evidence of this, with multiple ICOs getting breached and costing investors hundreds of millions of dollars.


3. Price volatility and lack of inherent value. This is a major problem because prices are unstable and there are a lot of variations.


4. Scalability. One of the biggest concerns with cryptocurrencies are the problems with scaling that are posed. This is the system’s ability to increase or decrease in performance and cost in response to changes in application and system processing demands.

Now that these currencies have been banned by Nigeria’s Federal Government, it is sure that operators will rather go underground, trading in unofficial markets commonly referred to as ‘Black Market’ in Nigeria. It is a phenomenon that can hardly be stopped. Hence, operators, who are mostly youths, and who trade in it for a living, will not be willing to abandon their ‘jobs’ but seek any other possible way of sustaining the jobs or business.

Related

What’s your Reaction?
Like
Like
0
Dislike
Dislike
0
Laugh
Laugh
0
Angry
Angry
0
Sad
Sad
0
Accurate
Accurate
0
0 Shares
Facebook Twitter WhatsApp Linkedin Messenger
×

Share this post!

Facebook Twitter WhatsApp Linkedin Messenger Telegram Tumblr
Tags: BanCBNCryptocurrency

Recent Posts

EXCLUSIVE: One soldier, two Amotekun personnel killed by bandits at Oyo correctional centre

EXCLUSIVE: One soldier, two Amotekun personnel killed by bandits at Oyo correctional centre

October 23, 2021
EXCLUSIVE: Manchester United shares rise by £181.6m after  Cristiano Ronaldo’s  acquisition

EXCLUSIVE: Manchester United shares rise by £181.6m after Cristiano Ronaldo’s acquisition

August 27, 2021
EXCLUSIVE: United Airlines to announce flight resumption to Lagos

EXCLUSIVE: United Airlines to announce flight resumption to Lagos

June 30, 2021
We are investigating alleged high-handedness of Amotekun, says Makinde

Oyo directs all LG,LCDA caretaker chairmen, committee members to vacate office

March 18, 2021
Five astonishing facts about Harmattan season

Five astonishing facts about Harmattan season

February 22, 2021
Amid pandemic, GTb struggles as Zenith, others grow gross earnings

Amid pandemic, GTb struggles as Zenith, others grow gross earnings

January 12, 2021 - Updated on January 18, 2021
Exclusive: Two foreigners kidnapped in Ibadan

Exclusive: Two foreigners kidnapped in Ibadan

December 12, 2020 - Updated on December 13, 2020
COVID-19: UI College of Medicine denies receiving N118m from Oyo govt

JUST IN: Why we want UI VC process nullified- Non-academic staff unions

November 2, 2020
Next Post
NBA drags Buhari to court over extension of Adamu’s tenure as IGP

NBA drags Buhari to court over extension of Adamu’s tenure as IGP

Leave a Reply Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Newspeakonline

© 2020 Newspeak & Associates
Optimized by IChannelTech.

Navigate Site

  • Breaking News
  • Business
  • Entertainment
  • Interview
  • Newpeak Magazine
  • Newspeak Exclusives
  • Politics

Follow Us

No Result
View All Result
  • Home
  • Latest News
  • Politics
  • Business
  • Entertainment
  • Technology
  • World
  • Opinion
  • Interview
  • Newspeak Exclusives

© 2020 Newspeak & Associates
Optimized by IChannelTech.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Newspeak We would like to show you notifications for the latest news and updates.
Dismiss
Allow Notifications