A Research and Development Economist based in Nigeria, Gospel Obele, has called for a unified regulatory mechanism for cryptocurrency trading.
This, he says, could complement an African digital currency if well implemented.
As the volume of cryptocurrency transactions burst in the Sub-Region, respective economies are expected to pilot national digital currencies under strict regulations.
Speaking on the Market Place on the Joy News channel in Accra, Ghana, Gospel Obele intimated that an African digital currency must be considered.
“Crypto has been able to build a level of singular markets when it comes to digital currency use and trade across borders, and this is a significant philosophy which the AFCTA originates. One of the significant issues that the AfCFTA presents is an important opportunity for a singular currency in the African Market. We all know because of the different development stages of financial markets in respective member states.”
“That may be impossible in the short term and very much demanding in a long time. So technically, the idea of Crypto or eCurrency can become a reasonable alternative to reaching that level of synchronization to facilitate trade activity across borders,” he stated.
Meanwhile, Mr. Obele has criticized the monetary policies of what he observes as a lack of technical understanding of modern blockchain technology, amid the cryptocurrency bubble.
According to him, no matter the stiff regulatory opposition, cryptocurrency has come to stay, and Ghana, Nigeria, and the continental free trade stand to lose out on its viable market prospects.
“The prospects are low because Central Banks are now taking active steps to develop their home-market e-currencies. So we need to go back to the fundamentals to get things right to be part of the crypto revolution,” he added.
Crypto transactions in Nigeria
Reports have shown that more cryptocurrency trading in Nigeria, with 1.1 million trades per month, is more than any other African country current trading, indicating somewhat a loss of faith in traditional investment forms.
According to blockchain analysis firm chain analysis, the dollar value of Crypto received by users in Nigeria in May 2021 was $2.4 billion, up to $684 million last December.
The statistics are as follows: 1.1m cryptocurrency trades per month in Nigeria on the Paxful platform, $65m traded each month, $100m spent on each transaction on average, $215m being the average money spent on each trade in the USA.