Could government nationalisation of cryptocurrency be a bigger threat?

[teamsherry]

Just like big banks sometimes run scared of new payment methods until they can vertically-integrate and control it, central banks around the world have been pondering whether to launch or nationalise their own cryptocurrency.

Stablecoins are an attractive development to dampen the wild market volatility of most forms of cryptocurrency. They tether the virtual asset to a regular, respectable fiat-based asset, often with 1-to-1 real currency back-up. They may be also provide an attractive starting platform for a central bank keen to put things back into perceived traditional boxes.

“Notably, large technology companies have proposed issuing global stablecoins. These instruments promise more efficient and innovative means of paying and might obtain rapid global adoption due to the market power of their issuers. …

If a global stablecoin were issued successfully in Nigeria  the Central  Bank could face a scenario where a potentially large number of transactions and savings would be conducted outside Of it and offshore. This could limit our ability to use monetary policy to influence interest rates and therefore inflation and employment targets, which would mean a loss of monetary sovereignty for Nigeria .”
Another key obvious risk discussed in the consultation is cyber-security.
What is your opinion about this ?

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[Charles-Tim]

Just like big banks sometimes run scared of new payment methods until they can vertically-integrate and control it, central banks around the world have been pondering whether to launch or nationalise their own cryptocurrency.

Individual countries want to create their own digital currency, not cryptocurrency but CBDCs. Some countries have created their own digital currency. Digitally made but not cryptocurrencies and they are basically fiat. 

Stablecoins are an attractive development to dampen the wild market volatility of most forms of cryptocurrency. They tether the virtual asset to a regular, respectable fiat-based asset, often with 1-to-1 real currency back-up. They may be also provide an attractive starting platform for a central bank keen to put things back into perceived traditional boxes.

Stable coins are different and not the same as CBDCs which are the government digital currency.

If a global stablecoin were issued successfully in Nigeria  the Central  Bank could face a scenario where a potentially large number of transactions and savings would be conducted outside Of it and offshore. This could limit our ability to use monetary policy to influence interest rates and therefore inflation and employment targets, which would mean a loss of monetary sovereignty for Nigeria .”
Another key obvious risk discussed in the consultation is cyber-security.
What is your opinion about this ?

Stable coins have been existing for many years now and they can be used for cross border transactions. People are still using naira in the country.  The marginalization that you are talking about, if it is about stable coins to be used locally among Nigerians, we know that this is not going to happen. Central bank will make sure anything that can affect their country's monetary policy will not survive in the country. The digital currencies that I know those countries are referring to are not stable coin but CBDCs which are centralized, controlled by the government and the central bank and they are just fiat and nothing more.

[Agbamoni]

Issuing of a stable coin in Nigeria cannot be possible in this recent times. This is because the government loves to be in control and take every monetary powers into their hand. But the stable coin will limit them to do all these things. Also, the stable coin might gain significant importance to Nigerians where we would prefer to have more of the stable coin rather than our local currency.  What the government should is to lift the ban against cryptocurrency and give more sensitisation/orientation to old and new cryptocurrency enthusiast. It will as well inspire people to create more awareness in the rural areas. Truly there are good benefits of cryptocuurency to a country's financial system not yet unfold. If the government would try to look at the good side of it more rather than focusing on the negative effect of it in our country.

[Samlucky O]

Issuing of a stable coin in Nigeria cannot be possible in this recent times.

I think it might be possible. Individual or an organization which is more like a factory or company, might decide to tell there workers to go and register or open a crypto wallet for payment rather fiat banking system. And this might be a must option. Just like the way signature campeign pay there workers in bitcoin, people will be forced to know more about bitcoin, and it will increase the adoption of Bitcoin and government will not know how there payment is done. Just like we reacieve our payment here when we receive bitcoin and convert it to fiat do government know where the money is coming from? So I thing by so doing it will eliminate our dying fiat currency and reduce inflation.

What the government should do is to lift the ban against cryptocurrency and give more sensitisation/orientation to old and new cryptocurrency enthusiast. It will as well inspire people to create more awareness in the rural areas.

Yes lifting the ban will increase the adoption not only to the rural areas but to also urban areas. But my fear is that if CBN remove the ban placed on crypto currency in Nigeria, the crypto that will be sent to bank might not be equal to the amount to be received. for example if you send $50 USDT to your bank account at the rate of #1200 per usdt, bank might reduce it to #1000 per usdt. But through  binance P2P the money send by merge will be complete before releasing asset. At the rate of#1200 per usdt.

Truly there are good benefits of cryptocuurency to a country's financial system not yet unfold. If the government would try to look at the good side of it more rather than focusing on the negative effect of it in our country.

Yes there are many benefit on crypto currency but CBN did what they did because of the decentralized system of crypto currency. But they failed to understand that crypto currency is a quick reviving force to eliminate inflation.
Emagine if federal government invest there money maybe like $30billion on Bitcoin when it was like $15k by now federal government would have made %110 of there investment probably like $71billion in total, there by using the profit of $41b to fix some pronlems that might have required loan from the neighbouring country like china.

[Makus]

Just like big banks sometimes run scared of new payment methods until they can vertically-integrate and control it, central banks around the world have been pondering whether to launch or nationalise their own cryptocurrency.

Individual countries want to create their own digital currency, not cryptocurrency but CBDCs. Some countries have created their own digital currency. Digitally made but not cryptocurrencies and they are basically fiat. 

Stablecoin no be bad idea for this country oo, as e fit help promote our foreign exchange market and bring more investors like, multinationals. But if we still look from another angle we go see say e nor clear at all, this kind of country wey dey go owe in trillion and still dey plan to owe more, how Dem wan take create coin wey no be inflation go kill am. I no fit even reason how the country go be, instead of thinking about CBN creating stablecoin why not thinks of them making large mining farms.

If Nigeria CBN or the federal government approved crypto for banks, come start mining farm, with better money, you go see say the country go move forward, because this darkness wey we dey don tire me when we go fit see light. Nigerian government don supposed to think of this kind of innovative. Just imagine am say a whole full country economy naim dey mine Bitcoin, this alone go set our economy for stage wey we go fit get more investors and tourism, and since Bitcoin mining dey consume electricity, e fit even make the government repair our bad power gride and generating sets.

Abi how una see am

[Samlucky O]

If Nigeria CBN or the federal government approved crypto for banks, come start mining farm, with better money, you go see say the country go move forward, because this darkness wey we dey don tire me when we go fit see light. Nigerian government don supposed to think of this kind of innovative. Just imagine am say a whole full country economy naim dey mine Bitcoin, this alone go set our economy for stage wey we go fit get more investors and tourism, and since Bitcoin mining dey consume electricity, e fit even make the government repair our bad power gride and generating sets.

Abi how una see am

For me to invest in bitcoin is more profitable than government mining Bitcoin. The question be say how many Bitcoin them fit mine per year? The money them go spend to build the plant, pay people wey go work there and the maintenance costs to carry run am no be small thing. If e go ft produce better amount of Bitcoin per day, e for better. But if e dey produce lesser amount I think investing all to bitcoin go better. because maintenance cost no dey for Bitcoin investment. You fit leave am there for as long as you can. And withraw anytime.

Just like this analysis wey I do here, you go see say the profit them go make from the time of Bitcoin dip to the curent price, no amount of mining fit give that kind profit within interval of 7months to 1 year.

Emagine if federal government invest there money maybe like $30billion on Bitcoin when it was like $15k by now federal government would have made %110 of there investment probably like $71billion in total, there by using the profit of $41b to fix some pronlems that might have required loan from the neighbouring country like china.

[CryptopreneurBrainboss]

Issuing of a stable coin in Nigeria cannot be possible in this recent times. This is because the government loves to be in control and take every monetary powers into their hand. But the stable coin will limit them to do all these things. Also, the stable coin might gain significant importance to Nigerians where we would prefer to have more of the stable coin rather than our local currency.

Why didn't the Enaira become a success in the country if you think say Nigerian go leave Naira go dey use the stablecoin. The citizens of the country no trust the governments so dem no go accept anything wey dem bring. Nothing wey dey governments related works in the country and people dun dey notice am that's why they're advocating for privatising, school no dey work, hospital no dey work, projects lack maintenance and with all this things going on Nigerians no trust the governments to use their things.

We dey even support oyinbo tings pass our own and that's why the government always use oyinbo companies dey run things to give us some sense of acceptance for the country. Issuing of stablecoin is vey possible, a stablecoin is more successful when it's centralized judging from the stablecoins we have seen so far in the market. Check all the stablecoins wey dey do very well for the cryptocurrency market, dem dey centralized or more centralized features than decentralized ones so why you think say e no go work for  Nigerian.

With a centralized stablecoin, the government will be more in control as dem fit track all the transactions wey you dey do with a click of the button unlike paper money we dey untraceable. Stablecoin gives the government control so no think say they won't be looking into the Idea but the thing na say we no get the capacity to maintain things for the country if not Enaira would had been a start for something similar to stablecoin.

[Pi-network314159]

Just like big banks sometimes run scared of new payment methods until they can vertically-integrate and control it, central banks around the world have been pondering whether to launch or nationalise their own cryptocurrency.

It would be better if they implement that parten to reduce the production of new naira note. For example our eNaira wallet should have been a crypto wallet with a stable coin which can be transacted in replacement of naira. Just like USdt which remain constant at any given time. So that the production of cash will reduce for people to transact with the coin and dey will have control over over it.

“Notably, large technology companies have proposed issuing global stablecoins. These instruments promise more efficient and innovative means of paying and might obtain rapid global adoption due to the market power of their issuers. …

For me I see no need to for the technology company to creat a new stable coin. There are many stable coin in the crypto space just like USDT which has no volatility and keep the value constant. What dey really need now is to increase in adoption or each country should have there own stabel coin and use the USDT for global transaction.