Vice President of Groupe Nduom, Papa-Wassa Chiefy Nduom, has urged the Bank of Ghana [BoG], to consider investing foreign currency reserves into bitcoin.
Chiefy Nduom, a Bitcoin enthusiast with a background in banking technology, believes that the bitcoin cryptocurrency could become digital gold for Ghana and other countries on the African continent.
Just in 2018, bitcoin jumped to $14,951 on January 3 from $13,354 on January 1.
Bitcoin went up by nearly 1,300 percent in 2017 to $13,800 on December 31, 2017, from $999 on January 1 2017.
“Just as investors will take gold and store it in their banks around the world to hedge against risks that they can’t perceive because they can’t predict the future, people are doing the same thing with bitcoin,” Mr. Nduom noted in a video message ushering in 2018.
In his view, bitcoin could also serve as a cushion against the fall in the value of dollar reserves, hence his advise to the BoG.
“In Ghana, in particular, I think the Central Bank should look very carefully into putting maybe up to 1 percent of our dollar reserves into bitcoin, studying the space and announcing to the world that we are going to be open for investment in bitcoin… we need to be heavily invested in these areas.”
Boosting development
Paying more attention to bitcoin could also aid Ghana’s aim to become less aid dependent, Mr. Nduom 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.
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By: Delali Adogla-Bessa/citifmonline.com/Ghana
