THE CBN AND THE MISSING KNOWLEDGE OF CRYPTOCURRENCY

There is no doubt that crypto-currency would redefine the future of finance, and it is either we learn about it or we miss the opportunities of the blockchain economy. Cryptocurrency is a thriving ecosystem, quietly encroaching on conventional finance’s territory.

Over the last ten years, Bitcoin and Ethereum users have averaged a growth rate of nearly 60% per year. Similarly, private and public investors have shown their concern and commitment to cryptocurrencies, this support is growing year by year – instead of our own public institutions to support innovation, they are busy hiding Covid -19 relief materials.

 

Let’s Dive into the Evolution of Cryptocurrency;

 
According to the Market and Market report, the cryptocurrency market was valued at USD 1.03 billion by 2019 and is projected to reach USD 1.40 billion in 2024. Major drivers for market growth are the transparency of distributed ledger technology, high remittances in developing countries, high cost of cross-border remittance, fluctuations in monetary regulations, and growth in venture capital investments.
 
At the heart of cryptocurrency is a rich history of innovation. It extends back to the 1980s with advances in the field of cryptography—eventually leading to the technology that forms encryption techniques designed to protect the network.
 
Since then, a series of key events have continued to shape the crypto sector;
 
  • The year 2009 Satoshi Nakamoto mines the first Bitcoin on a decentralized network
  • The year 2011 Litecoin launches
  • The year 2012 Ripple is founded
  • The year 2013 The price of a single Bitcoin reaches $1,000
  • The year 2015 Ethereum launches, introducing smart contracts into the crypto ecosystem
  • The Year 2017 Over 1,000 cryptocurrencies listed
  • The year 2017 Bitcoin’s price rockets past $10,000, reaching a peak just shy of $20,000
  • The year 2018 EOS offers a blockchain-based infrastructure for decentralized apps (DApps)
 
Now, there are over 5,000 cryptocurrencies in circulation, with many built on innovative applications and use-cases as the ecosystem rapidly evolves. Today, crypto offers cutting-edge advances that are diverse and transformative. In addition, it could also be considered an investment in tomorrow’s financial system—decentralized finance (DeFi).
 
DeFi is an emerging alternative financial system that is built on a public blockchain, which enables greater accessibility because anyone has the ability to connect to it. Additionally, transactions are publicly visible, enabling greater transparency across the system.
 

Who are the Key Players in the Crypto Landscape?

 
The cryptocurrency ecosystem is growing rapidly. Worldwide, private and public actors recognize its potential across many domains. The major players can be identified as follows;

 

Private Actors

 
  • Institutional Investors
  • Harvard Endowment Fund, Crypto Hedge Funds
  • Cryptocurrency Exchanges
  • Coinbase, Bitstamp
  • Banks & Finance
  • J.P. Morgan, Fidelity Investments, Swissquote
  • Tech
  • IBM, Microsoft
  • Power & Utilities
  • RWE
 

Public Actors

 
  • Governments
  • Venezuela
  • Central Banks
  • China, Sweden, Saudi Arabia
  • Organizations
  • Crypto Valley Association, Global Digital Finance
  • The rising popularity of crypto is bolstering new policies and adoption, as evidenced by the many players trying to break into the space.
 

The Nigerian Central Bank, and the fear of the big picture;

 
My view about the New Circular can be captured in this biblical phrase ;
 
”My people are destroyed for lack of knowledge; because you have rejected knowledge, I reject you from being a priest to me – Hosea 4:6 ”
 
We expected our Nigerian Central Bank to have a research arm on cryptocurrency policy, and work around the big pictures concerning;
 
  • Privacy; anonymized transactions protect users data through cryptographic techniques
  • Access; providing a new financial model for the millions of unbanked Nigerians.
  • Efficiency; steep reductions in settlement time and efficacy could save Nigerian consumers billions of Naira annually.
  • Security; providing immutable, traceable records of security-rich transactional networks
  • Programmable Money; smart contracts could drastically eliminate manual and administrative work— ultimately bypassing them altogether
 

The Way Forward;

 
 
 
  • Open an offshore bank account.
 
The above would give you some sorts of regulatory freedom in running your crypto and internet-based business as a Nigerian.
 

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