Nigeria to Study Bitcoin Proliferation

The Senate urged the regulators to issue clear statements in all the dialects spoken in Nigeria about the dangers of storing value with cryptocurrency
02 February 2018   307

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 LocalBitcoinWeekly 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.

Iranian Central Bank Doesn’t Recognize Bitcoin as Official Currency

The Central Bank of Iran announced that it has never recognized Bitcoin as an official currency and conducts no transactions in it or other cryptocurrencies  
22 February 2018   5

Last year, the Iranian government was interested in utilizing cryptocurrencies as a way of bypassing economic sanctions levied against the country. Today it completely changed its mind. The Central Bank of Iran announced that it will never recognize Crypto as official currency.

The bank informed citizens about risks of making investments because there is a chance to lose financial assets. Currently, the bank is cooperating with other institutions to develop mechanisms to control and prevent the use of cryptocurrencies in the country.

The wild fluctuations of the digital currencies along with competitive business activities underway via network marketing and pyramid scheme have made the market of these currencies highly unreliable and risky.

The Central Bank of Iran

However, there is some positive news. Today, Iran’s Information and Communications Technology (ICT) Minister Mohammad-Javad Azari Jahromi informed about the development of a local cryptocurrency by Post Bank. Unfortunately, the stage of research is not stated.