The Nigerian senate has announced the latest round of research which will begin to unravel the potential benefits and practical applications of Bitcoin. The research and findings will be due before the senate within 2 weeks as deliberations carry on regarding the future of bitcoin as a financial tool in the country.
“bitcoin is not recognized by the Central Bank of Nigeria, does not exist in any tangible form and is also not subject to any international or local monetary regulations, or backed up by any established government institutions for that matter.”
Senator Benjamin Uwaiumogu
The memory of the MMM scheme is still fresh in the minds of many Nigerians who lost millions as the scheme collapsed in 2016. The Ponzi scheme’s fallout has become the catalyst for the latest research and deliberation as the state seeks to protect Nigerians from shady schemes fronting bitcoin as the most profitable investment medium.
The senate also commented on the irresponsible advertising and promotion of bitcoin via various channels. Potentially encouraging uninformed individuals to invest in bitcoin, Mr. Uwajumogu highlighted the availability of education as one of the main vulnerabilities posed to Nigerians. The cautious attitude was also relayed by the upper chamber as it made explicit recommendations to several state departments including the Nigerian Deposit Insurance Commission and the Securities & Exchange Commission to denounce bitcoin as a savings medium. With the market volatility remaining a large concern for the senate, it advised the entities to spread the possible consequences of bitcoin savings to their customers and clients.
To conclude the senate has launched a probe into the uses of bitcoin in Nigeria. The investigation to be completed by a number of state entities including the committee on banking, insurance and other financial institutions, will be led by Senator Rafiu Adebayo.