In September 2021, El Salvador became the first country in the world to legalise cryptocurrency as a form of payment, allowing consumers to use crypto in all transactions.
Yet, its adoption, either legally or illegally, has continued to soar, forcing global businesses to begin to consider it as a form of payment.
A report by the World Economic Forum disclosed that there were 18,142 cryptocurrencies, 460 crypto-exchanges, with a market cap of about $1.7tn.
In 2021, Nigerians traded at least N316.9bn worth of Bitcoin, with over six million crypto transactions and 16,000 transactions per day on Paxful.
According to them, Nigeria might someday consider BTC as a form of payment, but it would never replace the Naira.
The Founder and Coordinator, Blockchain Nigeria User Group, Chimezie Chuta, said, “This will be contrary to the constitutional provision of Nigeria’s laws.
“And currently, it is the Naira that has been issued, so for you to have an alternative unregulated currency to become a legal tender has to be legitimised by altering the constitution.
And in the other country, their economy was so bad that they had to allow BTC to become a national currency.
“From a private perspective, one would have thought that what the CBN could have done is not necessarily legalise BTC but have reserve assets in BTC as a form of security against the continuous depreciation of the Naira.
He said, “CAR’s adoption of bitcoin as a legal tender came as a big surprise to me.
“Not even Satoshi Nakamoto, BTC’s inventor, expects that its electronic cash system would be adopted as the legal tender of any nation, including El Salvador.
“In other words, BTC can operate side by side with legal tenders such as a central bank or reserve bank currencies, as well as central bank digital currencies such as the eNaira.
“This is because BTC and other similar cryptocurrencies thrive in a decentralised space where there is no central authority.
He said, “The need for a safe and sound financial system cannot be overemphasised.
“As responsible leaders and players in Nigeria’s emerging blockchain industry and virtual assets sector, we understand these concerns.
When he answered his call, he said he would not comment on cryptocurrency but asked our correspondent to send a text message.
It is obvious that crypto has changed the financial landscape of the world, and different countries are floating or entertaining the idea of digital currencies as a response.
Much about crypto is still yet to be known, hence the caution from regulators.
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