Connect with us

E-Financial

CBN, Experts Say Bitcoin is Dangerous Scam

Published

on

Central Bank of Nigeria (CBN) has warned Nigerians and financial institutions to stay away from bitcoin and other digital currencies.

 

Experst also said that when bitcoin inevitably crashes, inexperienced investors who believed the hype could lose everything.

 

In Nigeria, CBN said the virtual currencies are not legal lenders in Nigeria and are unacceptable.

 

The bank called on financial institutions not to transact businesses in the currencies and anyone who does such, is at its own risk.

 

Digital currency bitcoin sold at $1000 in January 2017 and hit an all-time high of more than $19000 in December.

 

Currently, the price of bitcoin has been stagnated in the last two weeks and financial experts around the world continue to discourage investors.

 

Experts however said that Bitcoin’s price is not a reflection of its growing usage as currency; it reflects merely demand for the mirage of its speculative value.

 

Its price is rising only because people all over the world are hearing stories of how others doubled or tripled their money in a short period — and they don’t want to miss out. Unsophisticated investors are taking out loans to buy bitcoins. Those who have spent the currency feel remorseful when they see its price subsequently increase, so they hoard it.

 

Bitcoin was invented by an unknown person or group to be a digital currency. It allows money to be transferred directly between individuals using cryptography. The bank ledger is distributed to all users, and complex mathematical transactions ensure transaction integrity. Such a system makes it difficult for governments to know the identities of people exchanging money, so it has become a haven for money laundering, drug dealing, and corruption.

 

Beyond its usability for crime, bitcoin has major design flaws.

 

Bitcoins are created (or “mined”) at predetermined and gradually decreasing rates, with a total limit of 21 million issuable coins. The rate of increase in available bitcoins is not keeping pace with the number of people keen to buy them, so the price of a bitcoin keeps increasing. Because its price increases, both its “miners,” whose computers do complex calculations to earn the currency, and those who buy bitcoins from others feel reluctant to use them as currency by spending them. Instead, they sit on their coins while they wait for the price to rise further. With bitcoin supply constrained and increasingly falling short of demand, instead of functioning as a currency, bitcoin is a speculative empty asset.

 

Then, there are problems with the technology itself.

 

First, anyone who has access to a bitcoin password (or private key) has the authority to spend the bitcoins it unlocks; loss of the password means loss of all of the associated bitcoins, with no recourse. Second, linear growth in the chain of blocks that make up bitcoin is resulting in exponential growth in the computation necessary to process and verify transactions: Transactions that used to take 10 minutes now take hours. Third, with bitcoin transaction fees hovering above $25, a $5 payment now costs $30. This obviously is not a workable digital currency.

 

What is most worrisome for the planet is the energy expenditure that verifying transactions now requires. The bitcoin network is reportedly consuming energy at an annual rate of 32TWh — about as much as the entire nation of Denmark. Each transaction consumes 250kWh, enough energy to power an average Western home for nine days. China has become the dominant bitcoin-mining nation, with its provinces providing ultra-cheap energy to miners.

 

Digital currencies surely are the future, but other options make more sense than bitcoin. Take China’s WeChat Pay and Alipay, which now process $5.5 trillion of payments. Or India’s Unified Payments Interface, which makes it possible to transfer money between people within seconds — for no fee. This occurs bank to bank, provides customer support and security, and has little overhead. So there are better and simpler ways.

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world.

So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Continue Reading
Advertisement
Comments

E-Financial

CBN Injects $210m Into Forex Market

Published

on

Fresh $210million has been injected by Central Bank of Nigeria (CBN) into the inter-bank foreign exchange market, to meet customers’ requests in various segments of the market.

Figures obtained from the Bank on Monday indicated that CBN offered $100million to authorized dealers in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment received the sum of $55 million.

Those requiring foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated the sum of $55 million.

The Bank’s Acting Director, Corporate Communications Department (CCD), Mr. Isaac Okorafor, confirmed the figures, adding that those who made bids in the wholesale window would receive value for the bids on Tuesday, January 16, 2018
.

Okorafor reassured the public that the Bank would continue to intervene in the interbank foreign exchange market in line with its resolve to sustain liquidity in the market and maintain stability. According to him, the steps taken so far by the CBN in forex management had yielded many positives, particularly as it had to do with the reduction in the country’s import bills and accretion to its foreign reserves.


It would be recalled that the CBN last Friday, January 12, 2018, intervened in the Retail Secondary Market Intervention Sales (SMIS) to the tune of $262.5 million, to cater for requests in the agricultural, airlines, petroleum products and raw materials and machinery sectors.

 


Meanwhile, the naira continued its stability in the FOREX market, exchanging at an average of N360/$1 in the BDC segment of the market on Monday, January 15, 2018.

Continue Reading

E-Financial

ATM Deployers Report Double-digit Crime Surge in 2017

Published

on

The ATM Industry Association has published the results of its 2017 Global Fraud and Security Survey in which more than half of respondents (54 percent) reported an increase in ATM crime during the previous year. This represents a 12 percent change from the previous year’s survey, in which less than half (42 percent) of deployers said they had experienced a rise crime at their ATMs.

According to a press release, the survey looked at trends in ATM card skimming, PIN compromise, deposit and transaction reversal fraud, cash and card trapping schemes, eavesdropping, card data malware, chip card data shimming, network packet sniffing, and other network and remote network card data compromise methods.

“Since there are now such a variety of methods of attack, technologies and tools available, our industry needs to start 2018 with an attitude of vigilance,” ATMIA CEO Mike Lee said in the release. “We must unite like never before to tackle all these challenges.

“By reading this study early in the new year, industry practitioners will be well prepared for what lies ahead and can plan their defenses accordingly. I’d like to thank international ATM security expert Douglas Russell for giving us the true crime big picture in such a professional way.”

The new report is available online to ATMIA members. In the press release, the association also encouraged members to consult its online library of international ATM security best practices to reduce their risk of attack.

Continue Reading

E-Financial

UBA Introduces Leo, Chat Banking Personality on Social Media Platforms

Published

on

l-r: Executive Director, Lagos and West, United Bank for Africa(UBA) Plc, Mr. Ayoku Liadi; CEO, UBA Francophone Africa, UBA Plc, Mr. Emeke Iweriebor; Group Head, Online Banking, Austin Abolusoro; GMD/CEO, UBA Plc, Mr. Kennedy Uzoka; Executive Director/Group Chief Operations Officer, UBA Plc, Mr. Chukwuma Nweke; and Executive Director, Risk Management, UBA Plc, Mr Ike Uche, during the launch and introduction of Leo, a Chat Banking Personality on Social Media Platforms by UBA in Lagos on Thursday

United Bank for Africa (UBA), Pan-African financial institution, has changed the face of e-banking with the introduction of Leo, the UBA Chat Banker who enables customers make use of their social media accounts to carry out key banking transactions.

 

At the official launch of Leo, UBA’s Chat Banker, which took place in Lagos on Thursday, customers of the bank were given a step by step demonstration on the novel way of delivering lifestyle and quality  banking through the Facebook Messenger chat platform.

 

This is the first time that a financial institution in Africa has come up with this manner of solution to simplify the way customers transact. Something that has become necessary in today’s fast-paced world with demands for  quick-time transactions and response.

 

With the launch of the Chat Banking, customers will be able to open new accounts, receive instant transaction notifications, check their balances on the go, transfer funds and airtime top up. They will also be able to confirm cheques, pay bills apply for loans, freeze accounts, request for mini statements, amongst other things.

 

At the occasion, Mr. Kennedy Uzoka, group managing director, UBA, said that the launch of Leo is part of initiatives aimed at putting the bank’s customers first with UBA continuously developing strategies aimed at easing transactions for the bank’s numerous users, while ensuring utmost safety of their transactions.

 

Mr. Uzoka said, “The formulation of this product, is consistent with the bank’s customer 1st philosophy, where we are doing things not the way we like, but focusing on what the customers want, where they want it, and in the exact platform they want it.’

 

“At UBA, we have been working with technology giants that have the global capacity to ensure not only seamless but also effortless banking for millions of our customers across Africa. We at UBA, have collaborated with Facebook to come up with this innovation that is capable of revolutionising the way banking is done in Africa,” he said. Uzoka noted that Leo will  in the nearest future, show up on other social platforms and added that all it takes to enjoy the services is simply to have a Facebook account.

 

As he unveiled the character of Leo, Uzoka stated:  “Leo being an intelligent personality will give you feedback instantaneously as you transact your business on the platform. A solution that is from the customer’s standpoint and is easy to use by anyone’

 

Also speaking at the launch of Leo, Mr. Austine Abolusoro, group head of Online Banking at UBA, who conducted a step by step demonstration on the working of  Leo, reitirated that Leo  is  not just a chat machine, but an artificial intelligence personality meant to address any type of banking concerns raised by customers.

 

“Leo is ready and waiting to help with most transactions and to deliver any form of banking services. Leo is operating a lifestyle banking platform on facebook messenger to assist with your transactions while chatting with your friends and business partners. The security with this platform is that for every transaction, an OTP (One Time Password) is generated to the phone number that is registered on your account.”

 

He explained that with Leo your banking needs become easy and simple.  As simple as chatting.

 

UBA was incorporated in Nigeria as a limited liability company after taking over the assets of the British and French Bank Limited who had been operating in Nigeria since 1949.

 

The United Bank for Africa (UBA) Plc merged with Standard Trust Bank in 2005 and from a single country operation founded in 1949 in Nigeria – Africa’s largest economy – UBA has become one of the leading providers of banking and other financial services on the African continent.

 

The Bank provides services to over 14 million customers globally, through one of the most diverse service channels in sub-Saharan Africa, with over 1,000 branches and customer touch points and robust online and mobile banking platforms.

 

UBA was the first Nigerian bank to make an Initial Public Offering, following its listing on the NSE in1970.

 

It was also the first Nigerian bank to issue Global Depository Receipts. The shares of UBA are publicly traded on the Nigerian Stock Exchange and the Bank has a well-diversified shareholder base, which includes foreign and local institutional investors, as well as individual shareholders.

 

 

 

 

Continue Reading

Trending

Copyright © 2017 Communication Week Media Limited.