Nigerian economist Gospel Obele called for the development of uniform provisions for the regulation of cryptocurrencies so that they can complement the digital currencies of the Central Bank.
considersthat regulated cryptocurrencies can be used on a par with digital currencies developed by African central banks. Obele suggested that adoption of a single digital currency in the African Continental Free Trade Area is unlikely in the short term, and it will be very difficult to implement.
Some African central banks have just begun planning to launch their own digital currencies, while private cryptocurrencies are already being used to make cross-border transfers, Obele said. Therefore, if a clear mechanism for the supervision of cryptocurrencies is developed, they can become a reasonable alternative to government stablecoins, which will simplify international trade.
For example, in Nigeria, bitcoin is very popular due to the lack of foreign exchange. This has helped some foreign trade businesses stay afloat. However, due to the growing use of cryptocurrencies, many central banks are implementing prohibitive measures, preventing banks from servicing the accounts of cryptocurrency traders or digital asset firms.
“Cryptocurrencies have come to stay. Therefore, instead of limiting their use, central banks need to understand the technology on which digital currencies function. It is necessary to study the basics of the blockchain, then the banks will be able to become participants in the “crypto revolution” “, – said Obele.
Recently, the economic community, which includes fifteen countries in West Africa, raised concerns about the growing popularity of cryptocurrencies in the region. The community believes that cryptocurrencies cannot be accepted as a means of payment due to their high volatility and market speculation.