Cryptocurrency and Global Practices: Lessons for Nigeria
O. A. Ogunode
*
Department of Accounting, Babcock University, Nigeria.
A. T. Iwala
Department of Accounting, Babcock University, Nigeria.
O. A. Awoniyi
Department of Accounting, Babcock University, Nigeria.
B. O. Amusa
Department of Banking and Finance, Babcock University, Nigeria.
T. R. Omosebi
Department of Banking and Finance, Babcock University, Nigeria.
S. K. Kassim
Department of Accounting, Babcock University, Nigeria.
R. I. Akintoye
Department of Accounting, Babcock University, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
This paper examined cryptocurrency and its global practices with particular reference to salient lessons for the Nigerian economy. The desk review methodology anchored on content analysis was used for the study. The paper identified distrust in political systems, weak domestic currency and high inflation rates as key factors fueling the growth of cryptocurrency usage in Nigeria thus motivating individuals to resort to cryptocurrencies as a tool for wealth preservation and inflation hedge. The study also found that the existence of trust deficit and challenges associated with privacy concerns, system uptime and stringent onboarding requirements were capable of derailing the success of the newly launched digital currency(‘e-naira’) issued by government to curtail cryptocurrency usage in Nigeria. The study concluded that cryptocurrencies and central bank issued digital currencies (CBDCs) are now part and parcel of the new economic order and represents the future of finance. It therefore recommended that nation states should work assiduously to develop uniformly agreed regulatory framework and global standards for the usage of cryptocurrencies.
Keywords: Cryptocurrency, price volatility, global practices, central bank digital currency, Nigeria