Report: Nigerians See Value in Cryptocurrencies, Despite Slow Adoption

A recent survey report conducted by Luno, an online platform for trading cryptocurrency, has revealed that cryptocurrency has great potential and has …

A recent survey report conducted by Luno, an online platform for trading cryptocurrency, has revealed that cryptocurrency has great potential and has come to stay in the Nigerian online space, despite its slow adoption rate at the moment.

The report described Nigeria’s payment landscape as changing fast with a gradual rise in the trade of cryptocurrencies.

Developed in 2008, Bitcoin was the first cryptocurrency, created for the digital world, and is entirely decentralised. As a peer-to-peer payment structure secured with cryptography, cryptocurrencies are reinventing the global financial system.

Building on the 2017 edition of the Luno Cryptocurrency Awareness Survey, the recently released 2018 survey report delved even deeper in its research, surveying over a thousand people, and found that although the prices of top cryptocurrencies, like Bitcoin, surged to unbelievable highs, general public awareness didn’t meet the expectations of most analysts.

Apart from showing a certain level of acceptance for cryptocurrencies, the survey results indicate a positive future for cryptocurrencies in Nigeria.

Analysing the report, the report, Luno Country Manager, Nigeria, Owenize Odia, said: “We expect to see growth in the industry during 2019, despite the significant price volatility we saw 2018.”

According to the survey, over 65 per cent of respondents expressed familiarity with cryptocurrencies. From participants, 76 per cent of men and 54 percent of women said they were aware of cryptocurrencies.

The report further revealed that 48.09 per cent of the participants said even though they do not presently own cryptocurrency, they were willing to buy in the future. Notably, female respondents edged this group at 51 per cent. This willingness to buy, paired with the 38 per cent of respondents who said they already own cryptocurrency, leads us to expect continued adoption, the report said.

According to Odia, the report encourages us in our mission to upgrade the world to a better financial system by providing safe and convenient products for Nigerians to buy Bitcoin and Ethereum.

“Bitcoin remains the king of cryptocurrencies in terms of awareness. Over 80 per cent of those who own cryptocurrency claim to own Bitcoin, specifically. Ethereum, Bitcoin Cash, and Litecoin are a distant 2nd, 3rd and 4th at 30 per cent, 23 per cent and 22 per cent respectively,” Odia said.

Giving reasons why Nigerians buy cryptocurrency, the report said an overwhelming 76 per cent majority buy cryptocurrency as an investment. Those who use cryptocurrencies for payment or remittance, sitting at 30 per cent, came in second with online shopping and micro payments being significant uses. Although it is still early days for cryptocurrencies, however, it is expected to continue to growth in this category as adoption rises, particularly in Nigeria, according to the report.

The report further revealed that 42 per cent of respondents, strongly believed that improvements in transaction security and protection against hacking would positively influence their level of confidence in cryptocurrencies.

“Market sentiment may have been underwhelming in 2018, but with increased awareness fostered by platforms like Luno, we are sure to see an uptake in the adoption of cryptocurrencies during 2019,” Odua said based on the interpretation of the survey.

“In the coming months, Luno will continue to contribute to the growth of the cryptocurrency market in Nigeria, focusing on education and accessibility,” Odia added.

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Blockchain.com Launches New Educational Resource With Bitcoin Cash Report

The Blockchain.com team explained that its first primer discusses Bitcoin Cash (BCH), in response to user demand, stating: “In November of last year, …
Blockchain.com Launches New Educational Resource With Bitcoin Cash Report
Wallets
3 hours ago

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By

Avi Mizrahi

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Wallet provider Blockchain.com has created a new educational tool to help newcomers to the cryptocurrency ecosystem access information on digital assets. The first report issued on its Blockchain Primers is an introduction to Bitcoin Cash (BCH).

Also Read: The Daily: Huobi Downsizes, New OTC Desk to Launch in US

Blockchain Primers

Blockchain.com, the popular cryptocurrency wallet provider, has announced the launch of a new educational tool called Blockchain Primers. The service is intended to provide a relatively concise overview (typically less than 10 pages) of each crypto asset. Each report will contain a mix of introductory and background material for those less familiar with the particular asset in question, as well as the latest market data and analysis.

Blockchain.com’s reports will include takeaways on each crypto asset’s key differentiating features such as strengths and weaknesses, empirical data summarized in charts and tables, as well as quantitative and qualitative data-driven comparisons against similar crypto assets.

Blockchain.com Launches New Educational Resource by Publishing Bitcoin Cash Report

The Blockchain.com team explained that its first primer discusses Bitcoin Cash (BCH), in response to user demand, stating: “In November of last year, Bitcoin Cash underwent a contentious network split. As a result, we have received more questions about Bitcoin Cash in recent weeks than any other crypto asset supported by the Blockchain Wallet.”

Explaining Bitcoin Cash

Blockchain.com details that following the recent hard fork that resulted in the creation of Bitcoin SV, BCH has resumed its traditional status as one of the top five cryptocurrencies both in terms of market value and ecosystem support in the form of exchange listings. The research also shows that BCH continues to evolve beyond its original reason for coming into existence (lower transaction fees through larger blocks) to offer an even greater degree of distinction to BTC and other cryptocurrencies.

Blockchain.com Launches New Educational Resource by Publishing Bitcoin Cash Report

Advantages offered by BCH over BTC according to the Blockchain.com research team include greater maximum onchain transaction capacity/throughput, lower average transaction fees, and additional smart contract functionality, although like many cryptocurrency design choices some of these advantages may carry tradeoffs. However, the primer notes that while BCH is arguably on the whole more centralized at present than BTC, one upshot of being more unified is the ability to more quickly implement new technologies.

Have you checked out Blockchain.com’s Bitcoin Cash report? Share your thoughts in the comments section below.


Images courtesy of Shutterstock.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.

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Bitcoin X Price Down 17.3% Over Last 7 Days (CRYPTO:BTX)

Bitcoin X Price Down 17.3% Over Last 7 Days (CRYPTO:BTX) … Ethereum Classic (ETC) traded 0.3% lower against the dollar and now trades at …

Bitcoin X (CURRENCY:BTX) traded down 3.4% against the US dollar during the twenty-four hour period ending at 11:00 AM ET on December 31st. Bitcoin X has a total market capitalization of $7,116.00 and $161.00 worth of Bitcoin X was traded on exchanges in the last day. One Bitcoin X token can now be purchased for $0.0025 or 0.00000069 BTC on exchanges including Stellarport and Stellar Decentralized Exchange. In the last week, Bitcoin X has traded 17.3% lower against the US dollar.

Here’s how other cryptocurrencies have performed in the last day:

  • Bitcoin (BTC) traded 0.2% lower against the dollar and now trades at $3,596.46 or 1.00000000 BTC.
  • Ethereum (ETH) traded down 0.6% against the dollar and now trades at $118.02 or 0.03283895 BTC.
  • Bitcoin Cash (BCH) traded 5% higher against the dollar and now trades at $130.87 or 0.03641252 BTC.
  • Litecoin (LTC) traded 1.4% higher against the dollar and now trades at $32.11 or 0.00893324 BTC.
  • Monero (XMR) traded down 0.1% against the dollar and now trades at $45.43 or 0.01264089 BTC.
  • Ethereum Classic (ETC) traded 0.3% lower against the dollar and now trades at $4.32 or 0.00120167 BTC.
  • Zcash (ZEC) traded 0.1% lower against the dollar and now trades at $52.82 or 0.01469787 BTC.
  • Dogecoin (DOGE) traded down 0.1% against the dollar and now trades at $0.0021 or 0.00000057 BTC.
  • Bitcoin Gold (BTG) traded 0.3% higher against the dollar and now trades at $11.34 or 0.00315427 BTC.
  • Nano (NANO) traded 9.7% higher against the dollar and now trades at $0.97 or 0.00027033 BTC.

About Bitcoin X

Bitcoin X is a proof-of-work (PoW) token that uses the Time Travel hashing algorithm. It launched on April 23rd, 2017. Bitcoin X’s total supply is 20,998,348 tokens and its circulating supply is 2,864,374 tokens. Bitcoin X’s official Twitter account is @bitcore_btx. Bitcoin X’s official website is bitx.tk. Bitcoin X’s official message board is medium.com/@snatoshi71.

Bitcoin X Token Trading

Bitcoin X can be purchased on these cryptocurrency exchanges: Stellarport and Stellar Decentralized Exchange. It is usually not possible to purchase alternative cryptocurrencies such as Bitcoin X directly using U.S. dollars. Investors seeking to acquire Bitcoin X should first purchase Ethereum or Bitcoin using an exchange that deals in U.S. dollars such as Gemini, GDAX or Coinbase. Investors can then use their newly-acquired Ethereum or Bitcoin to purchase Bitcoin X using one of the exchanges listed above.

Receive News & Ratings for Bitcoin X Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Bitcoin X and related companies with MarketBeat.com’s FREE daily email newsletter.

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Cryptocurrencies: New regulations, risks and benefits

Marius Reitz, country manager at cryptocurrency facilitator Luno, explains that there had been several unsustainable movements in the crypto-market, …

Marius Reitz, country manager at cryptocurrency facilitator Luno, explains that there had been several unsustainable movements in the crypto-market, which prompted the introduction of stricter regulations around the currencies.

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Report by South Africa’s Reserve Bank Makes Strides Toward Crypto Clarity in the Country

A working group of South African financial regulatory organizations has released a consultation paper focused on cryptocurrencies, calling for public …

A working group of South African financial regulatory organizations has released a consultation paper focused on cryptocurrencies, calling for public input to develop a cryptocurrency regulation policy for the country.

This latest consultation paper is the most in-depth review of cryptocurrencies from South African financial institutions since an initial public statement on what it calls crypto assets was issued by South African authorities back in 2014.

The group that was responsible for putting together this consultation paper is comprised of the Financial Intelligence Centre (FIC), the Financial Sector Conduct Authority (FSCA), the National Treasury (NT), the South African Revenue Service (SARS) and the South African Reserve Bank (SARB).

As Cointelegraph previously reported, South Africa has taken a conservatively optimistic approach toward cryptocurrencies. The sector has been relatively unregulated, allowing blockchain-based businesses like cryptocurrency exchanges to operate, but SARS imposed taxes on crypto gains and investors were cautioned about the associated risks of investments made.

Over the next few years, the cryptocurrency industry grew exponentially, and the surge of interest led to the establishment of an Intergovernmental Fintech Working Group (IFWG), which began developing a review for regulators and policymakers focused on fintech, taking into account the implications for the financial sector and economy of South Africa.

The IFWG has described its approach to fintech as balanced, weighing up the benefits and risks of the sector.

At the beginning of 2018, the IFWG began its review and the release of the consultancy paper is the culmination of a year’s work. Reviewing the current state of cryptocurrency-focused activities, two specific use cases have been analysed by the IFWG. This includes the buying and selling of crypto assets, and transactions made with crypto assets.

Breaking it down

The consultation paper provides a complete breakdown of the perceived risks and benefits of crypto-related activities and goes on to present recommendations for policies toward crypto assets from a South African perspective.

Most importantly, the IFWG has called upon the South African public to give feedback on the paper and engage on the way forward, while making it clear that there was no intent to ban the use of cryptocurrency in the country.

Benefits and Risks of Cryptocurrencies Adoption

Benefits and Risks of Cryptocurrencies Adoption

Risks

The paper analyses the perceived risks that cryptocurrencies could have on the South African economy. Firstly, it is noted that the rise of cryptocurrencies could pose a threat to the central bank’s exclusive right to issue and control monetary supply in the country. Should the popularity of cryptocurrencies increase, this could then cause a decrease in the demand for fiat currency in South Africa.

Secondly, the paper recognizes the potential risks posed to financial stability, should the market capitalization grow to over $1 trillion. This figure is said to be psychological barrier that would lead to regulatory scrutiny by financial institutions and lawmakers around the world.

Thirdly, the paper suggests cryptocurrencies could pose a threat to the national payment system. Should cryptocurrencies gain massive adoption, there is fear that they will compete with the national payment system, with little to no regulatory oversight.

While the risks mentioned are hypothetical, the need for a regulatory response has been prompted by concerns already experienced in South Africa. This includes the need for consumer protection while preventing possible misuse for money laundering and terrorist financing, exchange control evasion, illicit transactions, tax evasion and a lack of market stability.

Benefits

The paper also notes the benefits that cryptocurrencies could provide South Africans.

Local investors could find some solace investing in cryptocurrencies, which are an asset class not tied to the risks created by political and economic instability in the country.

The anonymity of cryptocurrencies is also recognized as a potential benefit and drawcard for investors. Furthermore, an increased demand for cryptocurrencies in the country could see the premium paid by investors reduced by a greater supply of cryptocurrency exchanges.

Furthermore, the working group notes the often-touted benefits of cryptocurrencies — including fast, low fee, anonymous and encrypted transactions — but a lack of working use cases proving these points has led to the belief that major adoption won’t be seen in the medium to long term.

Pondering the way forward

Cryptocurrency regulation has been the subject heavy debate around the world, with many countries taking varying stances. Given that the nature of cryptocurrencies is essentially borderless, this makes it very challenging from a regulatory perspective.

With this in mind, the report identifies two possible approaches to cryptocurrency regulation.

The first is enforcing regulations on cryptocurrencies in accordance with existing legislature. This effectively leaves businesses involved in the cryptocurrency and blockchain industries bound to actual laws.

The second is a more forward-thinking approach. The South African report cites the American Commodity Futures Trading Commission’s (CFTC) “do-not-harm” approach, which emphasizes innovation in the financial system.

The major focus is avoiding overregulation, which would tend to stifle innovation of the sector.

Naturally, a balanced approach seems to be the ideal way forward. The South African report makes reference to researcher Jan Lansky’s suggestions of country-specific approaches to cryptocurrencies, as seen below.

The classification ranges from 0 to 5, with 0 on one side of the spectrum, where countries completely ignore cryptocurrencies, and 5 is the opposite, where a country has either enforced bans or fully integrated.

Approaches to Regulating Crypto Assets

Approaches to Regulating Crypto Assets

According to this measurement system, South Africa registers at level 2, given the paper released by SARS in 2018, which enforced normal income tax rules on cryptocurrencies.

Better compliance is the aim

With this in mind, the working group would like to see South Africa climb further up the level of classification of Lansky’s matrix.

Perhaps most importantly, South Africans don’t have to worry about any impending bans on the use of cryptocurrencies. The working group made in clear that there were no plans to ban the buying, selling or holding of cryptocurrency.

The report concedes that a certain level of regulation is needed. To this end, specific requirements will be set out to meet Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards.

Positive response in South Africa

The report seems to have been met with positive responses in South Africa. According to Marius Reitz, Luno’s South Africa country manager, the daily volumes have exceeded 1,200 BTC per day on its South African exchange in recent months:

“These numbers demonstrate the growing adoption of cryptocurrencies in South Africa and across the globe and reinforces our aim of upgrading the world to a better financial system.”

Reacting to the SARB report, Reitz said consumers in the country will have peace of mind knowing cryptocurrency service providers are being held to certain standards:

“SARB is taking an activity-based approach, meaning they are not proposing to regulate cryptocurrency itself but rather those persons or entities that provide services involving virtual assets.”

Reitz also noted the importance of the implementing requirements to meet AML/CFT standards, as well as the overall positive influence that well-balanced regulation could have for the sector:

“This will help keep out fraudsters and other operators with low concern (or capabilities) to keep customer information and money safe. We’ve seen that regulation in the industry can have a very positive impact. Imposing regulations in South Africa (and across the world) will enhance general trust in and stability of the market. It may also result in even more talent and investment capital flowing into the industry, unlocking more business models and bringing more advanced products to market.”

Cointelegraph also spoke to James Preston, project lead at local publication SA Crypto, who has been involved in the space for the past five years. He suggests that the move is a balanced approach that protects conventional financial institutions and consumers while not impeding on the use of cryptocurrencies:

“Having carefully read through SARB’s consulting paper on regulating crypto assets in South Africa, it’s clear to me that they want to be as progressive as possible without hindering and infringing on the security of South Africa’s central banks.

“Despite them trying to mitigate the risk, and trying to remain as traditional as possible in terms of fiat, centralised monetary systems, they are still being progressive in their approach to crypto assets.”

South Africans have until Feb. 15, 2019 to provide input on the proposed way forward by the South African Reserve Bank.

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