A Nigerian newspaper and Online version of the Vanguard, a daily publication in Nigeria covering Nigeria news, Niger delta, general national news, politics, business, energy, sports, entertainment, fashion,lifestyle human interest stories, etc Experts woo potential investors, governments warn With Bitcoin’s capitalization of $268 billion, experts say the revolution of the cryptocurrency market has changed the narrative of investment globally, as it successfully displaced Coca-Cola with a capitalisation of $195 billion and Boeing’s $175 billion. From all indications, the emergence of cryptocurrency in the financial market has continued to post a threat to the conventional legal tenders as being used and controlled by the central banks of many nations.

While many countries have approved the innovation by creating their own cryptocurrencies, some countries and individuals still perceive the new dispensation as a fraud and a threat to their national economies. Only last week, the government of India, among others, warned its nationals against patronising crytocurrencies which it described as Ponzi schemes.

The Central Bank of Nigeria (CBN) had, in a similar vein, early last year, issued a circular to banks and other financial institutions requiring them to take certain actions relating to digital currencies. Citing money laundering and terrorism financing, the CBN asked banks to “ensure that you do not use, hold, trade and/or transact in anyway” in digital currencies.

It added, “Banks also must ensure that their digital currency exchange customers have effective AML/CFT controls to allow them to comply with customer identification, verification and transaction monitoring requirements. If in doubt, the relationship with those exchanges and customers should be discontinued immediately”.

Specifically naming Bitcoin, Ripples, Monero, Litecoin, Dogecoin, Onecoin and similar products, the bank reiterated that they were not legal tender in Nigeria. Same day, the Nigerian Securities and Exchange Commission (SEC) made its own announcement regarding digital currencies. Read more from vanguardngr.com…

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