Cryptocurrency is the world’s digital currency, used exclusively for online transitions. It is the currency the government of Cameroon has begun making plans to legalize.
Senior officials of the Ministry of Post and Telecommunications discussed “cryptocurrency Challenges, opportunities, and risks in Cameroon” in a workshop in Yaoundé on November 15.
Discussions were chaired by the Minister of Post and Telecommunications, Minette Libom Li Likeng during which
participants examined mechanisms that will facilitate the process to legalize and possibly regulate the cryptocurrency use in Cameroon.
What is Cryptocurrency?
Cryptocurrency is a digital currency used for online financial transactions. There are currently about 6,000 cryptocurrencies. Among some of the most widely used currencies are ; Bitcoin, Cardano, Etherium , Solana, Binance coin and many others.
The currency which is 100% virtual is the fruit of digital technology. Cryptocurrency can be stored in a digital wallet, and protected by a secret code, which belongs to the owner.
According to Minister Libom Li Likeng, “cryptocurrencies are decentralised digital currencies, which use cryptographic algorithms and a protocol called blockchain, to ensure the reliability and traceability of transactions”.
Since cryptocurrency went into use in 2009, they have continued to be popular because of the absence of control of central banks. The cryptocurrency age is seen by many people as the most convenient era of exchange. As far as cryptocurrency is concerned, coins in gold, or silver or even bank notes are completely inexistent. It is a system of transfer of digital assets.
Buying and selling using cryptocurrency is done through online exchange platforms.
Many countries around the world are now creating and using their own digital currency. The over 6,000 cryptocurrencies in the world, have varied properties, features and uses.
Many people who have welcomed the new currency say it is a decentralized digital currency with traceable transactions, secured by blockchain. People do not need banks to do transactions. Transactions are instant, and void of worries about interest rates and bank requirements. Cryptocurrency also uses a technology known as cryptography, to secure the system.
As for the Cryptocurrency services, Minister Minette Libom Li Likeng says “Cryptocurrency offers among other things, greater speed in transactions, greater reliability and security, availability and mobility, transparency and accessibility, as well as lower costs. Moreover, their values are driven by scarcity, as with precious metals”.
The Dark Side
A host of countries around the world have been using cryptocurrency for online financial transactions for over a decade now. Some African countries like Botswana, Ghana, South Africa, Zimbabwe, Kenya and Nigeria have developed their own digital currencies.
Regardless of how many countries have embraced Cryptocurrency for online transactions, but many worry about the volatile nature of the currency. Dr. Winfred Mfuh, Technical Adviser in the Ministry of Post and Telecommunication says cryptocurrency can not be regulated. It’s worth can’t be measured. Values change as demands also change.
“ There are scamming risks. Someone says he is selling cryptocurrency, do you know how it looks like ? Do you know where it comes from ? Who regulates it ? Once you take that risk, you have you have no insurance no one to blame, and nobody to go to”.
Cryptocurrency is not really accepted in most countries as a means of payment. The value also changes quickly, often determined by its demand.
Cryptocurrency use around the world is fast growing, regardless.
Kathy Neba Sina