I couldn’t blame the government; perhaps they are not sufficiently informed about the potential of cryptocurrency. As the saying goes, “A man is always an enemy of what he does not know.” Blaming the crypto sector for much of the country’s currency rate manipulation is a misplaced priority.
Those in power and managing the country have been misguided by bad players in the system. Without addressing the major problems affecting the rise and fall of the naira, the currency will continue to devalue and cause more socioeconomic troubles for the country.
What should be the government’s priorities? The type of economy a country operates determines the power and value of its local currency. Nigeria operates an overly import-dependent economy, which is one of the major factors leading to the ever-falling value of the naira. The government could channel more energy into improving the country’s balance of payments, enhancing export activity, boosting local industries, and encouraging the patronage of local products. Public-private partnerships in agriculture and other sectors could boost local goods production and facilitate increased export activities.
Additionally, the government should address the alarming rates of poverty, unemployment, and corruption that have been persistent issues.
Cryptocurrency, a financial system underpinned by blockchain technology, can promote financial inclusion and innovation. It opens the door wider to global interconnectedness and enhances the open market economy. The alleged manipulation from the crypto industry is a minor issue that can be easily addressed through regulation.
Learning from advanced countries like the U.S. and U.K., the crypto industry is regularly regulated. Traditional financial institutions in these countries are not outrightly restricted from engaging in and facilitating crypto transactions. While there are significant regulatory requirements and a cautious approach, these institutions are not entirely prohibited from engaging with cryptocurrencies. Similar regulatory measures could be implemented in Nigeria to protect consumers and ensure market integrity.
Utilizing traditional financial institutions to transact cryptocurrencies will further enhance regulatory power and address currency manipulation by bad actors in the P2P market of the industry.
Actually, I couldn’t entirely blame the Nigerian government for their cautious view towards cryptocurrency, given the rise of bad players in the industry.
In conclusion, it is essential for the government to fully grasp the problem and accommodate those who have been legitimately leveraging the crypto industry for their businesses and affairs. Over the years, the crypto industry has helped reduce unemployment. Therefore, the government should carefully evaluate the industry, embrace its potential, and consider regulating it periodically.
By: Comr. ADISA, Muhammed (A.K.A.
Polymath)
adisamuhammed0001@gmail.com
07084960323
