A parliamentary body for the Economic Community of West African States has agreed with similar African authorities in advising African crypto investors and consumers a word of caution. The Authority believes that there is an apparent danger in crypto and therefore it should be avoided at all costs.
A joint meeting of the Parliamentary Committee of ECWFS was convened in Burkina Faso. The agenda of the meeting was reported to hold a discussion over the use of crypto, its benefits, and its disadvantages in the African region. Crypto was also considered by the Committee as a source of investment as well. The participants of the meeting also included people from crypto critics and crypto trading fields.
Except for the crypto traders, all of the participants gave their findings against crypto. They argued that there is no doubt that crypto has its own advantages and disadvantages. However, it is a business involving a high level of risk, which cannot and should be disregarded by any means. They opined that it would be in the best interest of African people to stray their hands from crypto. They also gave an example that if someone is willing to pay in crypto that does not mean that the receiver would want to accept crypto.
On the other hand, the Joint Committee recorded its concerns over crypto speculation. The Committee argued that since crypto is speculative therefore its volatility will be a major problem for e-cash. The Committee said that because every crypto comes with a limited supply that is why there is huge speculation.
Subsequently, a warning has been issued by the Committee to African consumers and crypt investors. In the warning, a word of caution has been advised to investors to remain extra vigilant with regard to crypto dealings. It has been advised that crypto crimes are taking place everywhere in the world, including the African continent. Two of the most sinister crypto scams are still going on i.e. MTI and Africrypt. In both these scams, the looters have gotten away with the public money while the sufferings were caused to investors.
However, the Committee did not support the idea of banning crypto usage. Instead, it appealed to the authorities to stand guard and ensure public safety and their money by all means. In the meantime, the public has been informed that if anything bad happens to them, then they should be held responsible. There is no legal backing nor is there any proper regulation relating to crypto in the region. The circumstances necessitate that a cautious approach must be adopted by investors.
The Parliamentary body also issued a press statement suggesting people guard their crypto assets. They have been warned against the risks of stealing, hacking, and scamming.