CRYPTO CURRENCY A THREAT TO THE BANKING SECTOR OR AN OPPORTUNITY

Proponents of Crypto Currencies say that the continuous popularity of crypto currency and an increase in citizen’s participation in the crypto trading has the potential of reducing deposits and investments in the banking sector due to the recent forecast about its continuous profitability
Crypto Currency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

The decentralized crypto currencies such as bit coin now provide an outlet for personal wealth that is beyond restriction and confiscation. The idea that investors are in charge of managing their own investment without any control from an external force is a major source of motivation for crypto players

Empire Fm news spoke with Nana Agyeman, Manager for Jislah Financial Services in Takoradi, about the future impact of crypto currency on the banking sector and other financial institutions.

The Governor of Ghana’s central bank, Dr Ernest Addison last month said that the necessary regulations to support the use of Bitcoin and other crypto currencies currently do not exist in the country and the bank therefore does not recognize it as a legal tender.