Nigeria: Ngige Chukwuebuka - How Crypto Currency Aids Foreign Trade

26 September 2020

Crypto currency is a digital asset designed to work as a medium of exchange, wherein individual coin ownership records are stored in a ledger existing in a form of a computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership.

For Ngige Chukwuebuka, CEO KD Biz Hub, there are various factors that hinder or affect the smooth running of international trade. According to him, the first is the difference in exchange rates. Due to the difference in currency, exchange rates always pose a huge problem for the smooth running of international trade.

He discusses, "This problem of exchange rates therefore causes a loss of benefit to those who are into cross-border transactions. This could lead to a reduction in the supposed benefit to be made meaning a loss on one side. Imagine you budget a certain amount and then exchange rates increases, which means increase in price of goods, thereby having to cut costs or break the pre-planned budget. This is where crypto currency comes in. First off, the problem of exchange rate fluctuation is eliminated as transactions are performed with the crypto currency such as bit coin. The use of Crypto currency for international trade offers the benefit of lower or no transaction fees, standard exchange rates with zero fluctuations, proper record keeping, secure means of payment, fast movement of money. However, crypto currency still faces a lot of problems as they are not valid or legal in certain countries."

With the aid of registered companies such as KD Biz Hub, awareness is being created on the positive impacts of crypto currency, such as bit coin and daily transactions, as well as carried out on the company website.

He added, "Again, many uncertainties as to the legitimacy of the cryptocurrency. People are not properly informed on cryptocurrency as a lot of scammers hide under the umbrella of cryptocurrency to swindle unsuspecting individuals thereby leading to a general mistrust in crypto currency."

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