Money Monday: Cryptocurrency buyers may lose all their money

Virtual currency is the money of the future and Nigerians are increasingly embracing the digital money lifestyle. Something which started out with a reluctant and slow adoption is gradually gaining strong demand.

Although, Nigeria’s government had threatened to issue sanctions against banks that process or got involved in Bitcoin, OneCoin or any other virtual currency.

But cryptocurrency dealers are springing up here and there nowadays. A mass of unemployed Nigerian youths are venturing into agency and distribution of Bitcoins, WebMoney, among other types of cryptocurrencies.

More investors are putting their money into cryptocurrency exchange businesses and consumers are also showing growing interest in virtual currencies.

Some have associated this sudden surge of interest and acceptance for cryptocurrencies in Nigeria to the action by Central Bank of Nigeria (CBN) to stop the outflow of foreign currencies.

Statistics prepared by localbitcoins.com reveal that Nigeria’s weekly Bitcoin exchange volumes since mid-December 2016 has increased from more than ₦400 million ($1.3 million) to over ₦1 billion ($3 million).

But, globally, things may not continue pleasantly for cryptocurrency, as holders of virtual currencies might lose all their money, according to a UK-based financial regulator.

Andrew Bailey, head of the Financial Conduct Authority (FCA), warns seriously against the impending risk awaiting virtual currencies.

Bailey told journalists that:

‘It’s not a currency, it’s actually not regulated in its Bitcoin form. It’s a very volatile commodity in terms of its pricing.

If you look at what has happened this year, I would caution people. We know relatively little about what informs the price of Bitcoin.

It’s an odd commodity as well, as the supply is fixed. If you want to invest in Bitcoin be prepared to lose your money – that would be my serious warning.’

There is also no clear regulatory position on digital currencies in Nigeria as well. But this does not mean digital currencies are illegal in the country, it only means that investors and consumers need to be cautious about their craze for such currencies.

Government has to step in to provide regulations for both individuals and businesses participating in the use and trade of digital currencies. It must also revise existing regulations that are relevant to financial systems and transactions within the country, like the Money Laundering Act.

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Money Monday: Quick money loan through your smartphone

It used to be so hard to get a loan in Nigeria. This was something that made life difficult for unemployed persons, low-income earners and small businesses.

But the story seems to be changing today.

There are now new financial solutions that make it possible for people and businesses to borrow money quickly. One of such solutions changing how people and businesses get debt money in Nigeria, at the moment, is Paylater.

How it works

With Paylater you can loan money in minutes through your Android smartphone. No document, no collateral required. All you have to do is download the app, sign up on the app, apply for a loan and wait for a decision.

When you are applying for a loan Paylater will calculate a suitable loan value for you and send you a loan offer. You will need to accept the loan offer to complete your loan application.

Once your loan application is approved, you would be asked to register a debit/ATM card from which repayment will be made in future and take an instant selfie for identification. After completing all of these, your will receive the money in the account you provided during your loan application.

Paylater will offer a maximum loan value of ₦10,000 on your first loan. Your maximum loan value will increase on your next loan if you payback the first loan on time and gain a higher trust level.

The interest on the first loan is 15-30%, depending on the repayment period you request in your loan application. It is 15% for the 15-day repayment period and 30% for the 30-day alternative.

One more interesting thing is that you can earn money by referring friends to Paylater. Each time you refer a friend that applies for a loan and repays the loan on time, you earn points that you can use to repay your loan. Once you sign up on the app, you will get a unique referral code. You can share your referral code with friends instantly by clicking on the ‘SHARE YOUR REFERRAL CODE’ button in the ‘Refer A Friend’ interface.

You can try it out now too. Download the app and get started. Click here to download app.

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