Nigerians have consistently sought various means to regulate Bitcoin alongside other cryptocurrencies. Although it is Africa’s largest bitcoin market by trading volume, the nation has refused to answer the pending outcries and questions of the citizens, which are all pointed towards innovation.
The digital age is recreating the modern operational environment. And this is channeling us to an era of massive power competition, and as a result, policymakers ought to recognize this changing dynamic trend. Still, it is also of utmost need for military professionals to comprehend this.
Early February 2021, the Central Bank of Nigeria (CBN) issued a circular to warn all financial institutions that “facilitating payments for cryptocurrency exchanges is prohibited by banks.” They ordered that identified accounts associated with cryptocurrency ought to be closed.
Digital currencies will rearrange the future of currency and empower the nation. Digital currencies can become the stable reference of individual nations and their economies.
Speculations and consistent uproars state that Jurisdictions have long contended with the threat posed by cryptocurrencies to Central banks’ power over every monetary policy. The reason why some individuals are afraid of cryptocurrency is because of Its volatility and impact on economies.
China, for example, has banned crypto-trading multiple times, but an outright ban a year ago on crypto mining was of great detriment to the industry as it had a great part on the price value of the assets.
Cryptocurrencies have a huge impact on the global market’s balance as the coin’s fame spread based on its best possibility of having no defect or flaw. It uses cryptography, making it easy to encode or decipher with a key and difficult to without a key, which means that coins could be hard to create but easy to verify transactions.
When China announced new regulations, bitcoin, ethereum, and other crypto coins experienced a massive drop in their share price as investors dumped holdings and mining rings.
Influential people can move the cryptocurrency markets, and one of such individuals is “Elon Musk.” Called the “Musk’s effect,” his Twitter activities sometimes affect the assets market value, revealing that public figures can influence the system either positively or negatively and, as such, could be a loophole for its users, but a gainsay for governments against the policy.
Written by: GloriaSun