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Monday, April 22, 2024

Online Money Gains, Jittery & Scam

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African Central Banks appear apprehensive about the emergence of cryptocurrencies.

This Month, the Central Bank of Liberia immediately cut off news of the launch of an online payment platform dubbed Crypto currency.

A form of payment that can be exchanged online for goods and services, the technology is fast growing in Africa, mainly the continent’s big economies –Nigeria, South Africa and Kenya.

Here in Liberia a certain Abundance Community Coin (TACC) planned to introduce the platform in Monrovia on May 14. CBL aborted the company’s plan based on its unregulated nature and inherent risk its poses to the domestic economy.

“The CBL views the attempt by TACC to introduce a digital financial product in Liberia without adherence to the required regulation as not only illegal, but also intended to undermine the country’s financial system,” the Bank  said.

“TACC is hereby warned and directed to immediately halt all publicity on the launch of the product and desist from carrying out any financial activity. Any attempt to proceed on the contrary, the CBL will have no other alternative but to pursue legal recourse in accordance with the law.

The CBL reassures the general public about safeguarding the financial system against action counterproductive to the operation of the system and urges members of the public to exercise due caution in transacting with such illegal financial institution.

Nigeria’s central bank In February said it ordered deposit-taking banks and other financial institutions to close accounts dealing in cryptocurrencies because it was threatening the country’s financial system.

“The recent regulatory directive became necessary to protect the financial system and the generality of Nigerians from the risks inherent in crypto assets transactions,” the central bank said in a statement Sunday.

Cryptocurrencies are increasingly being used for money laundering, terrorism financing and other criminal activities due to the anonymity that they provide, the regulator said in the statement signed by its spokesman Osita Nwanisobi.

The central bank said it finds “no comfort” in the use of cryptocurrencies and will “do all within its regulatory powers to educate Nigerians to desist from its use and protect our financial system from activities of fraudsters and speculators.”

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