Key Takeaways
- ENaira's light is dimming because Nigerians have lost trust in the government.
- According to the BOB, Botswana has no official framework for regulating crypto assets.
- Ex-Binance executives have reportedly estimated the exchange's value at $300 billion.
Analysts argue that the digital currency's already precarious situation is exacerbated by the fact that it has to compete with newer, more technologically advanced fintech businesses. The nation has a disproportionate share of the continent's fintech investment, as previously reported by Bitcoin.com News. Nigeria is home to some of the top fintech businesses.
There are concerns raised by a Financial Times article that the danger posed by well-funded fintech companies makes it unlikely that the e-naira would achieve the CBN's aims of increasing financial inclusion and better targeting social and welfare expenditures.
Songhai Advisory analyst Adedayo Ademuwagun is noted in the paper as expressing skepticism about the enaira's -viability. Most of the CBN's ambitions for the digital naira are already being met by privately held fintech businesses, Ademuwagun claims.
Bank of Botswana: No framework for crypto regulation in place
First, the central bank acknowledges that cryptocurrency trading is a popular pastime among local inhabitants. Additional to this, the BOB admitted to receiving and responding to public or media enquiries on the issue.
A warning issued by BOB to cryptocurrency investors is that they will have no legal recourse if they lose money.
Next, the central bank reveals some of the findings it found while keeping an eye on the growing trade in crypto assets.
According to Botswana's laws and regulations, there is no prohibition or restriction on investing in crypto assets like bitcoin. Bitcoin and other decentralized technologies, known as "cryptocurrency," have the same dangers as any other intangible asset, such as full loss of value or potential exploitation of the technologies to the disadvantage of investors, according to a news release from the Bitcoin Foundation (BoB).
Despite the BOB's insistence that cryptocurrency investors who lose money to fraudulent schemes will have no legal recourse, the bank does encourage investors to "undertake due diligence on the registration and legality of the business, along with the nature of the business activity, including the manner of generation and source of returns."
According to a report, the Binance exchange is valued $300 billion
In spite of being registered in the Cayman Islands, Binance does not have a formal headquarters anywhere in the globe at this point.
According to reports, Binance might be valued three times as much as Coinbase if it were to go public today, even though it has no physical headquarters and seems to have few restrictions.
Wall Street Journal reports that Binance might be valued up to $300 billion as a publicly listed firm, given its current trading volume and transaction costs, which are expected to rise in the coming months.
With a 24-hour trading volume of almost $46 billion, according to CoinMarketCap, Binance has surpassed Coinbase to claim the top spot as the most active cryptocurrency exchange. The anticipated value would also put it ahead of its US counterpart, which went into its IPO in April with an estimated worth of $100 billion.
What are eNaira’s success chances on a scale of 1 - 10. Also, do you agree with Botswana's ideas about crypto?
