Nigerians Trade $4 Million in Bitcoin Weekly, despite Warnings

Nigerians Trade $4 Million in Bitcoin Weekly, despite Warnings

Nigerians are trading close to $4 million worth of bitcoin a week on 13 local exchanges, despite multiple warnings by authorities against investing in cryptocurrencies. Experts have called on the government to rethink its position and adopt smart regulations, “allowing innovation to move forward”. Regulators need to understand how it works before applying bans, analysts say.

Also read: Malta to Give “Peace of Mind” to Crypto Companies

Warnings Have No Effect on Nigerians

Regulators and legislators in Nigeria have taken a hardline stance on cryptocurrencies. The latest manifestation of their attitude came in the form of an investigation into bitcoin trading ordered by the Senate. There have been multiple warnings from other institutions, as well. Last year the Central Bank of Nigeria stated that “virtual currencies” were not legal tender and told banks their dealings with cryptos were at their own risk. The Nigerian Deposit Insurance Corporation has warned Nigerians that they cannot rely on consumer protection when trading cryptocurrencies.

Nigerians Trade $4 Million in Bitcoin Weekly, despite WarningsHowever, all those warnings have not changed hearts and minds, as the latest trading data shows. The value of bitcoin has decreased since last year, but interest in the most popular cryptocurrency is yet to wane in Nigeria, Leadership reports. Nigerians have continued to invest, trading weekly up to N1.389 billion worth of bitcoin (>$3.8 million) in February after an average of N1.299 billion (<$3.6 million) recorded at the end of December.

Up to 13 cryptocurrency exchanges are currently operating in Nigeria. Trading on local platforms scored a weekly record high of almost 1.95 Nigerian Naira worth of bitcoin in mid-December, as news.Bitcoin.com reported. The amount is equal to $5.4 million USD under current exchange rates.

Innovation First, Then Regulation

Nigerians are investing in other cryptocurrencies, as well, and the total has reached $4.7 million weekly, according to Emeka Okoye, software developer and chief architect at Cymantiks Nigeria. He urged government institutions to rethink their approach to regulation. The expert said criticism would only fuel further speculation and encourage the use of cryptos by criminals. Okoye advised Nigerian regulators to adopt “smart regulation”, rather than outright ban:

It is an attitude of allowing innovation to move forward and let regulation follow. It is about the consumers and not about the players.

If authorities ban cryptocurrencies, they would be outlawing a tech tool, the analyst explained. Then “outlaws will use these tools, and you have no control – people will have to live with the consequences” Okoye warned. He also said that regulators need to understand the situation properly before applying any bans.

Nigerians Trade $4 Million in Bitcoin Weekly, despite Warnings“Do they understand how it works? I can build a crypto exchange that is not domiciled in Nigeria and they cannot regulate it. I also have a foreign card and they cannot control what I do with it?” the expert pointed out.

Emeka Okoye thinks that cryptocurrency will not entirely replace fiat money but will complement it by providing for easier and more convenient transfers of wealth. In his opinion, the current trend of speculation, which is driving the value of cryptocurrency, is a distraction from its real value.

Do you think Nigerian authorities will listen to experts and change their policy towards bitcoin and the crypto sector in general? Tell us in the comments section below.


Images courtesy of Shutterstock. 


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PR: How Viola.AI Uses Blockchain to Tackle the Billion Dollar Love Scams Industry

Viola.Ai - Love on the Blockchain

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

Viola.AI leverages on blockchain technology to change the dating and relationships landscape in the world.

One of the questions the team at Viola.AI gets asked frequently  —  why does the dating and relationships industry need blockchain?

One of the key problems that blockchain help to solve is trust.

There’s a huge trust problem in the dating industry — online love scammers are making billions of dollars a year preying on unsuspecting singles. Their usual modus operandi — grab a photo of a random decent looking person online, masquerade as the person, use a fake name, and start chatting with singles who think that this persona actually exists. Once an emotional connection is created, they will start coming up with sad sob stories to ask for money transfers.

One of the dirty secrets of this industry is  —  many online sites and mobile apps actually use bots to lure their users into subscribing for their services. With the short customer lifetime value and quick churn rates, many industry players succumbed to such unethical practices, breaking the trust between service provider and user.

Firstly, with Viola.AI’s Real ID verification built on blockchain, singles’ identity is verified through visual recognition and singles now can be assured that they are really chatting with authentic and verified users. No more faceless characters, no more fake profiles containing pictures of models or actors/actresses. Also, by hashing the results of the REAL-ID onto the blockchain and by decentralizing the key personal information onto the mobile devices, this will ensure that even if there is a security breach, all the private data is still protected.

Use case: Elizabeth uploads a photo to create her profile on Viola.AI. Viola.AI verifies that Elizabeth is a real person by taking a real-time video scan of her face and checking against her social media accounts before approving her profile. The process is then decentralized and stored on the Blockchain.

Secondly, VIOLA tokens are both a community and utility token. How powerful an AI can be is based on how accurate and sufficient the data is. With Viola.AI, our tokens can be used as rewards to be given to users who contribute content, provide responses and generate data to increase Viola.AI’s accuracy. By having our own tokens rather than using other cryptocurrencies, the transaction is frictionless, as opposed to using gas.

Use case: Henry decides to propose to Elizabeth. He asks the community on Viola.AI for advice and ideas. Dozens of users reply with their proposal stories while merchants respond with offers for their services and venues. Henry picks the best suggestions and his proposal is a success!

Thirdly, the Ethereum Smart Contracts ensure that all rewards, revenues shares and referral commission to be paid out are fulfilled as promised, not just today, but also going forward. The process is trustless. This would attract and encourage more merchants and experts to come onto the marketplace and propel the growth of Viola.AI.

Use case: Henry and Elizabeth’s 1st wedding anniversary is coming. Viola.AI reminds Henry and asks if he wants to do something special. Flowers and a special date, Henry says. Viola.AI sends him 3 different suggestions for roses — Elizabeth’s favourite! After Henry decides on the flowers, Viola.AI arranges for their delivery, and books the restaurant. Henry surprises Elizabeth and their anniversary is a special one!

Viola.AI is no small project, however the team is confident as they have a strong foundation to start off with. The backing company, Lunch Actually Group is Asia’s Dating Giant with 13 years of proven success record and 1.4 million users with products comprising of 4 Dating Apps, 2 Online Sites and 3 Offline Services and regional presence in 6 big cities in Asia.

“Viola.AI is our most ambitious project to date, and I strongly believe that Viola.AI will transform the dating and relationships industry. We have already successfully helped thousands of singles in Asia find their lifelong happiness. By harnessing on blockchain and AI technology, our dream is to help millions if not billions worldwide to find love, nurture their relationships and be in happy and fulfilling marriages,” said CEO and Co-Founder, Violet Lim.

For co-founders, Violet Lim and Jamie Lee, understanding the pain points of one’s dating and relationship journey is key. After successfully matched hundreds of thousands of people in the past 13 years, they know what what singles need, and what the industry are currently lacking today — which became the inspiration for the conceptualization of Viola.AI.

Viola.AI is the world’s first A.I-driven Marketplace for dating and relationships. She will be the first dating and relationship A.I. that evolves with the users — creating a global and borderless full loop solution from dating, courtship, relationship to marriage. With the capability to perform deep learning about each user’s personality, background and behaviour, Viola.AI can give them the most relevant and valuable advice, as well as proactively prompt couples before any important relationship milestones and help them solve their challenges early.

Viola.AI will also incorporate community-based marketpace, where experts, merchants and partners can come in to provide relevant goods and services to the users at the right stage.

** END **

Join the discussion on Viola.AI Telegram: https://t.me/ViolaAI

Contact Email Address
christina@viola.ai
Supporting Link
www.viola.ai

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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