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Nigerian Senate probes spread of bitcoin, ‘ponzi’ schemes

The Nigerian Senate on Tuesday deliberated on the widespread usage of digital currency, bitcoin, and ponzi schemes in Nigeria.

In a motion titled, ‘Urgent need to investigate the proliferation of Bitcoin, a form of Crypto-currency, to ascertain the worthiness of same as a form of investment in Nigeria’, the senate stressed that not only has the proliferation of bitcoin become one of the best forms of investment in the country, it is openly marketed across the country on the local television and radio stations, mostly to Nigerians, ”not aware of the consequences.”

A senator, Benjamin Uwaiumogu (APC, Imo North), who sponsored the motion, expressed concern that Nigerians are ”freely advised, and even persuaded to invest in crypto-currency as it promises quick returns, in certain instances, a triple or quadruple of the invested sum as profit within days.”

He said that Google quoted one (1) Bitcoin to be the equivalent of N5, 706, 713.20 as at December 10, 2018.

He said he was aware that bitcoin is not recognised by the Central Bank of Nigeria, does not exist in any tangible form and is also not subject to any international or local monetary regulations, or backed up by any established government institutions for that matter.

The lawmaker also reminded the senate that the MMM bubble of 2016 (ponzi scheme) left millions of Nigerian families broken, devastated and many businessmen lost all their capital in the phony scheme.

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