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ECOWAS Parliament Warns Against Dangers Of Cryptocurrencies

ByHybrid News

Jul 8, 2021

The ECOWAS Parliament Wednesday warned the governments of West and Central Africa subregion against the use of Cryptocurrencies for commerce and means of exchange.

The Parliament which sits at Ouagadougou issued the warning during a join committee sitting.

The Parliament said it was concerned about the risk factors involved in the use of the currency.

Although the Parliament while noting the prospects of the currencies to facilitate investment in West Africa as pointed out by experts, it however highlighted the dangers.

The meeting noted that there has been decline in the value of Bitcoins in recent weeks, adding that this was clear that Cryptocurrencies were not safe assets.

The meeting said the West African subregion should not regard Cryptocurrencies as a means of payment or be seen as e-cash, noting that the currencies were regarded as extremely volatile.

The Committee further identified the risk factors as insecure liquidity of the currencies because of its shallow depth and high concentration of assets as only 2.5 per cent of users could hold 96 percent of bitcoins.

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