It's no news that countries have started to think of the prospect of making Bitcoin a legal tender. I'm sure Our Nigeria as a nation have also been considering the pros and cons of such prospect. If, and when it comes to fruition, how does it affect our economy. Surely, we'll have a competitor and alternative for the unreliable nature of the naira, and a great alternative for the supposedly pushed proposition of the Enaira. Obviously, it would solve a lot of problems. Like the inflationary trends and a great store of value. The changes and effects could be limitless.
Here are the Pros and Cons of adopting Bitcoin as a legal tender....
Pros- An hedge against naira devaluation
- It offers a Borderless transactions
- It offers an alternative to eNaira, and as we know Bitcoin already has global adoption, and recognition etc..
Cons- Volatility
- Infrastructural restriction. Power supply, internet access, and digital literacy, may affect the usage of Bitcoin in rural areas.
- It can reduces government control over monetary policy, and capital flow, which could bring about serious conflict amongst regulators. etc....
Adopting Bitcoin as a legal tender will not magically solve 9ja's inflation or it's economic problem. This is because inflation is systemic meaning that it is caused by structural issues, such as maybe low production, high importation, corruption, mismanagement of resources etc ..... Unless these issues are solved, even f we are making Bitcoin a legal tender it will only provides individuals with a store of value, not a curing the wholee economy.