China's central bank has just banned crypto currency and all transactions involving it deemed illegal. Thing is, China is one of the world's crypto markets. Even Bitcoin energy use was up 75% around September 2019, but by April, 2021, it fell to about 46%. Now, China has outrightly banned it.
Remember that these crypto coins are mined easily in China due to low electricity costs and cheaper computer hardware, making her one of the main centres for mining cryptos.
So, with the ban, Bitcoin and other crypto currencies nosedived.
But why did they ban such an innovative method of transaction powered by the block chain technology?
Well, the very same reason Godwin Emefiele of the Central Bank of Nigeria (CBN), gave months ago. That crypto currencies are not regulated by banks and are not real assets. That it is volatile, speculative and untraceable in the sense of it.
Godwin Emefiele of CBN(dailypost.ng)
China added that it can used to launder money too, and that is a fact.
So, if China, with its elite level technologies could still come to the same conclusion as Nigeria's Emefiele, maybe the CBN governor is not clueless after all. Maybe he knows exactly what he is doing and is unlucky Nigerians crucify people who make decisions they do not understand or find acceptable.
Crypto currencies definitely have their merits, but the Cyber menace by internet fraudsters, also known as "Yahoo boys" have been facilitated by the unregulated means of payment.
It is actually not 'real money', as a certain billionaire once said, one speculation in any direction pushes the value.
Nigerians will now need to cut the CBN and the Buhari-led adminstration some slack after this. China has it all, more billionaires there recently too, yet they realize that a form of payment without regulation and traceability is bad for the economy.
Nigeria is used to borrowing money from China, perhaps they borrowed this from the CBN?.
Stay safe, ECfranklin cares.
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Content created and supplied by: ECFranklin (via Opera News )
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