THE EFFECT OF CRYPTO CURRENCIES (LOTUCRYPTO) ON NIGERIA ECONOMY
By the Lotucrypto team
Through technological means, the global financial world is gradually welcoming the current evolutional trend from flat money to almost virtual currencies. In time past, like in the early 90s there have been many attempts to producing digital money. Bitcoin introduced in 2009 becomes the most successful of digital money. Crypto currency is described as digital record-keeping device that uses balanced to keep track of trading obligations which is publicly known to all traders (Ahannaya et al, 2021) some of the examples of crypto currencies include. Bitcoin, ethereim, lotucoin etc. interestingly crypto-currencies are invented to function without a centralized or third party regulatory body, they are protected from the control of central banks, government authorities. As observed by Bartolett et al; (2017) many Central Banks are gradually adopting the blockchain technologies and crypto-currency for retails and large value payment.
In Nigeria today, the acceptance of crypto-currency is accepting wide popularity although not without the fear of its fear of its functionality since there is no central bank regulation.
Though Digital currency may seem attractive to cybercriminals and present a lot of challenges to the law enforcing bodies in Nigeria, the cost of discarding the usefulness of this financial technology is far weightier than the great risk it may pose. More so, for a developing nation as Nigeria, Crypto currencies can serve as a very important tool for national development in this digital age. A lot of suggestions have arise from research concerning the government response to legislating crypto currency ranging from the creation of state down crypto to banning, the cost of ignoring crypto currencies in time like this, is still going outweigh the fear at the moment.
Effect on Agricultural sector
Digital currencies have the potential of solving significant difficulties in agriculture (Ahunaya et al, 2012). The challenge for Blockchainn is the ability to connect the ethnology to viable business models and compelling use cases. Blockchains, have enormous possibility to create and increase a considerable access to money in the agricultural sector of Nigeria. This will address food scarcity and strengthening food availability, it will also eliminate corruption due to third party exclusion.
In an economy as ours (Nigeria) with a highly developed financial market the suitable management of cryptocurrency will definitely result in an increase in revenue generation through tax which would enhance the budgeting plans of the government.
As the technology improves to limit the volatility of crypto currencies their popularity and use tend to increase making it possible for it to coexist with other fiat currencies.
Talking about a model for this kind of interaction, the Lotucrypto provide a steady platform where both fiat believers and crypto enthusiast can thrive. It will be unthinkable for the Nigerian government to eliminate the currency. It would rather been seen as unreasonable for a nation striving to promote indigenous innovation. Thus, it will be a significant stride, if Nigeria join several other countries to accept its operation with a level of regulation.
Read the Lotucrypto white paper @; https://lotucrypto.medium.com/lotucoin-white
Join our telegram community @; https://t.me/me/joinchat/Ew77hnQEiKY4Yzg0
Stay in touch with our updates @ https://medium.com/@lotucrypto
Ahannaya, C. G., Oshinowo, A. E ., Sanni, A. ., Arogundade, J,A., &Ogunwole, O.J. (2021). The effect of cryptocurrencies on nigeria economy. School of Management Sciences,
Accounting Department, Babcock University, Ilishan-Remo, Ogun State, Nigeria
Bartoletti, M., Carta, S., Cimoli, T., & Saia, R. (2017). Dissecting Ponzi schemes on Ethereum: identification, analysis, and impact. Retrieved from: https://arxiv.org
Akinyemi, B., Okoye, A.E., & Izedonmi, F. (2015). History and development of accounting in perspective.
Baron, J., O’Mahony, A., Manheim, D., & Dion-Schwarz, C. (2015). National security implications of virtual currency examining