CRYPTOCURRENCY AND THE AFRICAN ECONOMY

Agbo, Elias Igwebuike and NWADIALOR, E.O (2020) CRYPTOCURRENCY AND THE AFRICAN ECONOMY. Economics And Social Sciences Academic Journal, 2 (6). pp. 84-100. ISSN 5282 -0053

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Abstract

: As an encrypted peer-to-peer network for ensuring digital trade, cryptocurrency is a technology developed some years ago. Amidst some threats, Bitcoin, the first and most popular type of cryptocurrency, is already gaining poularity universally as a near alternative to the age-long centralized financial payment systems. Some jurisdictions have even classified this class of virtual currencies and tokens as having the same status as taxable assets. This article aims at providing more update on cryptocurrencies and exploring their prospects and threats universally particularly in Africa. Specifically, the paper is aimed at examining and discussing bitcoin and its close variants. The study notes that while the private sector keeps heralding cryptocurrency enthusiastically in many countries, their governments have been generally apprehensive, reserved, and in some instances unreceptive of cryptocurrency. This paper observes that by using a simple endogenous process it is possible for countries to ensure the coexistence between fiat currency and cryptocurrency. Doing so is likely to enable them reap the economic benefits of both centralized and decentralized currency schemes. Consequently, this study urges for greater international cooperation on the adoption of cryptocurrency, as it reduces the effectiveness of monetary policy at the country level, Even at that, countries should be prepared for potential speculative attacks and incorporate this decentralized means of payment better into their financial systems.

Item Type: Article
Subjects: H Social Sciences > HC Economic History and Conditions
Divisions: Faculty of Management and Social Sciences
Depositing User: mrs chioma hannah
Date Deposited: 04 Oct 2021 07:40
Last Modified: 04 Oct 2021 07:40
URI: http://eprints.gouni.edu.ng/id/eprint/3181

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