West African Parliament’s Economic Bloc warns against the use of cryptocurrencies – Emerging Markets Bitcoin News

The Parliament of the Economic Community of West African States (ECOWAS) has joined the list of African organizations that have warned against the use of cryptocurrencies. In its warning to crypto users in West Africa, the legislature insists that these digital assets are too volatile and therefore “their use in the African continent is not without its dangers”.

Rejecting crypto is not a violation of legal regulations

According to this report, this parliamentary warning came after the joint committee meeting in Ouagadougou, Burkina Faso. According to the report, the meeting was convened to “explore the prospects of cryptocurrencies as an intermediary for investments”.

However, after the meeting, which was also attended by “cryptocurrency experts and resource persons”, the joint committee reminded crypto users in the sub-region of the many shortcomings of digital currency. According to the report, one of the shortcomings of cryptocurrencies is that while they can be used as a medium of exchange, users can still refuse to accept them as a form of payment. Such a refusal is currently not considered a violation or violation of the relevant laws.

Crypto volatility

Meanwhile, the joint committee also claimed that cryptocurrencies cannot be compared to e-cash because of their volatility. According to the committee, this crypto volatility stems from their “restrictive issuance mechanism that encourages speculation”. As a result, the ECOWAS Parliament is now calling on “crypto enthusiasts to protect themselves from theft”.

The report also lists other perceived risk factors that users of crypto assets are exposed to. These include the irreversible nature of some crypto transactions, the lack of a central authority overseeing or controlling transactions, and the concentration of assets in a few hands.

What do you think of ECOWAS ‘warning about the risks of using cryptocurrencies? Let us know what you think in the comments below.

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