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Analyst warns against bitcoin investments

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Ghana has been cautioned against the hasty adoption of the virtual currency bitcoin.

According to Investment Banker Mahama Iddrisu, Ghanaians need to take utmost care before buying and using the currency.

Mr Iddrisu’s comments come after Vice President of Groupe Nduom, Papa-Wassa Chiefy Nduom urged the Bank of Ghana [BoG], to consider investing foreign currency reserves into bitcoin.

Bitcoin which is a digital currency went up by nearly 1,300 percent in 2017 to $13,800 on December 31, 2017, from $999 on January 1 2017.

Speaking to Citi Business News Mahama Iddrisu said Ghanaians need to carefully consider the future and stability of bitcoin before investing in it.

“Even though bitcoin is being used in some countries it’s still a pseudo currency. It’s not something Ghana should get into now. We would be rushing by getting involved in the currency, at a time when our system is not ready for it. ”

He also mentioned the need for sufficient public education for Ghanaians.

“We need a lot of education for the Ghanaian public. If the central bank wants to get involved it must come with a policy statement that will deter other administrations who might not be interested in bitcoin.”

Buttressing his call for Ghana to invest in bitcoin, Mr. Nduom mentioned that paying more attention to bitcoin could aid Ghana’s aim to become less aid dependent added.

“We want to move away from aid to trade so let’s trade digital assets and eventually put in a tax-free regime where international investors can invest in trade and digital currencies but those gains won’t be taxed.”

The exchanges as part of the trading will be taxed and that “will bring massive freeing of exchange reserves into the country, and allow us to profit from this ongoing phenomenon.”

“… but the first step that would signal a great message is for the brilliant minds at the Bank of Ghana to study this asset and consider just 1 percent. Lets put it in there and see what happens because every investment is a risk,” Mr. Nduom concluded on the point.

13 African countries should buy Bitcoin right now

Chief Nduom in an article suggested a list of 12 other countries apart from Ghana, who should take advantage of the Bitcoin regime.

Bitcoin is a digital currency created in 2009.

It offers the promise of lower transaction fees than traditional online payment mechanisms, and is operated by a decentralized authority, unlike government-issued currencies.

Today’s market cap for all bitcoin in circulation exceeds $7 billion.

It can be used to purchase goods and services.

By: Bobbie Osei/citibusinessnews.com/Ghana

Citi Business News