Cryptocurrency and Global Practices: Lessons for Nigeria

Abstract

This paper examined cryptocurrency and its global practices with particular reference to salient lessons for the Nigerian economy. The desk review methodology anchored on content analysis was used for the study. The paper identified distrust in political systems, weak domestic currency and high inflation rates as key factors fueling the growth of cryptocurrency usage in Nigeria thus motivating individuals to resort to cryptocurrencies as a tool for wealth preservation and inflation hedge. The study also found that the existence of trust deficit and challenges associated with privacy concerns, system uptime and stringent onboarding requirements were capable of derailing the success of the newly launched digital currency(‘e-naira’) issued by government to curtail cryptocurrency usage in Nigeria. The study concluded that cryptocurrencies and central bank issued digital currencies (CBDCs) are now part and parcel of the new economic order and represents the future of finance. It therefore recommended that nation states should work assiduously to develop uniformly agreed regulatory framework and global standards for the usage of cryptocurrencies.

The Historical Evolution, Developments and Accounting Implications of Cryptocurrency Operations

“…On the other hand, the Republic of Korea requires banks to report suspicious activities in order prevent money laundering. Ogunode et al, (2022) espoused that Canada has the second highest number of automated teller machines for bitcoins in the world. Furthermore, he stated that transactions in cryptocurrency for the settlement of goods and services in Canada were treated and also subject to either income tax, corporate tax or capital gain tax.…”

“…They, therefore, recommended that the Federal Government of Nigeria should enact laws with a focus on taxation, license operations and supervision of cryptocurrency exchanges in Nigeria. Ogunode et al, (2022) examined cryptocurrency and its global practices using content analysis. The paper found out that absence of trust amidst the political actors and systems, high inflation rates and weak domestic currency were key drivers of cryptocurrency usage in Nigeria.…”

“…The rapid development of information and communication technologies (ICT) and the outburst in the number of online users accounted for the creation as well as upsurge in users and uses of cryptocurrencies. Historically, Ogunode et al, (2022) stated that bitcoin, created by Satoshi Nakamoto in 2008, is the reputed pioneer cryptocurrency. Also, they espouse that cryptocurrency is one of the fundamental disruptions in the financial asset exchange mechanism.…”

Trends and challenges of higher education in Nigeria: Fine and applied arts technological literacy

“…Nigeria's government has been accused of mismanaging funding, resulting in a lack of advancement in higher education (Ogunode et al, 2022;Ololube et al, 2016). The government only allocates 13% of its budget to education, contrary to UNESCO's 26% recommendation (Ogunode et al, 2022;Ololube et al, 2016;Viatonu & Muse, 2022). Technology and technological literacy are crucial in Nigeria's FAA context because these are widely used for instruction.…”