The Senate of Nigeria has asked the Central Bank of Nigeria (CNB) and other regulators to investigate the proliferation of bitcoin and to educate citizens about the possible dangers of the cryptocurrency.
The lawmakers asked the CBN, the Nigeria Deposit Insurance Corporation (NDIC) and the Nigerian Stock Exchange (NSE) to launch a campaign against the risks of trading bitcoin. The Senate urged these institutions to issue clear statements in all the dialects spoken in Nigeria about the dangers of storing value with cryptocurrency.
Much of the lawmakers’ fears are based on recent events after Mavrodi Mundial Moneybox (MMM), a Russian ponzi scheme, became popular in Nigeria snapping up over two million users. Nigeria’s central bank estimates that users lost $50 million.
Meanwhile, bitcoin trading in Nigeria has skyrocketed with weekly bitcoin trade volume surpassing 1 billion nairas ($2 million) in August 2017 on LocalBitcoin, a global bitcoin exchange.
Weekly bitcoin trade volume in Nigeria on LocalBitcoin
We have recently reported that Hong Kong launched a public education campaign to raise awareness of the potential risks of investing in ICOs and buying cryptocurrency.