The economic community of West African countries is concerned about the growing popularity of cryptocurrencies – Bits Media

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Regional Economic Union, which includes fifteen countries of West Africa, expressed concern about the growth of the popularity of cryptocurrencies in the region.

During the meeting of the United Committee of the Economic Community of Western Africa in Burkina-Faso, The member countries of the Union came to the conclusion, that the fall of the Bitcoin course in recent months has become a reminder of that, that cryptocurrencies are an unsafe asset.

Members of the Union noted, that cryptocurrencies cannot be accepted as a payment fund without the necessary legal protection, usually provided by state fiat currencies. Other voiced risks are associated with volatility, speculation and fraud.

Cryptocurrency liquidity compared to flows in the foreign exchange market, and that, what 96% BTC currently belongs to 2.5% users, It also represents the risk. Recall, that according to Glassnode, The number of wallets with a balance is more 1 BTC has declined since the beginning of the year, while the number of addresses, containing less 1 BTC, increased.

The cryptocurrency industry in West Africa has repeatedly become the subject of close attention of regulators. for instance, At the beginning of the year the Central Bank of Nigeria (CBN) forbade commercial banks to serve accounts of cryptocurrency exchanges and other companies, working with digital assets. However, lawmakers did not support the ban.