A West African regional economic body has expressed its concerns about digital currencies, particularly volatility. The Economic Community of West African States (ECOWAS) cited recent BTC price volatility as a sharp warning that digital currencies aren’t a viable store of value.
Nigeria, Senegal, Ghana, Côte d’Ivoire, and Burkina Faso are among the 15 West African countries that make up ECOWAS. The members have a combined population of about 350 million people and a GDP of nearly 700 billion dollars.
The Joint Committee criticized the use of digital currency in crime, reflecting the opinions of a growing number of world officials, including US Treasury Secretary Janet Yellen and European Central Bank President Fabio Panetta.
Aside from being utilized in crime, the committee believes that digital currencies are vulnerable to cyber-attacks. “As a result, cryptocurrencies aficionados must be wary of the potential of theft because, while cryptocurrencies are inherently secure, portfolios are not,” it warned.
ECOWAS, like many other governments, is concerned about the lack of transparent laws governing the business. As a result, regulators in the area have taken a mixed attitude, like Nigeria, adopting a hard line against the sector.
Because of the lack of rules, the industry has become an easy target for money launderers and other criminals.
Nigeria continues to be the ECOWAS region’s digital currency leader. While the central bank has taken an anti-digital currency position by barring banks from helping the business, this has not affected its development.