The Economic Community of West African States (ECOWAS) Parliament has joined the list of African organizations that warn against the use of cryptocurrencies. In issuing a warning to crypto users in West Africa, the legislature insisted that these digital assets are too volatile, so “their use on the African continent is not without danger.”

Refusing to accept encryption does not violate the law

According to a report, this parliamentary warning was issued after a joint committee meeting in Ouagadougou, Burkina Faso. According to the report, the meeting was held to discuss the “prospects of cryptocurrency as an investment promoter.”

However, after a meeting attended by “cryptocurrency experts and resource people”, the joint committee reminded crypto users in the subregion to pay attention to the many shortcomings of digital currencies. According to the report, one disadvantage of cryptocurrencies is that although they may be used as a medium of exchange, users can still refuse to accept them as payment. Such refusal is currently not considered as a violation or violation of relevant laws.

Crypto volatility

At the same time, the joint committee also claimed that due to its volatility, cryptocurrencies cannot be compared to electronic cash. According to the committee, this cryptocurrency volatility stems from its “restrictive issuance mechanism that encourages speculation.” Therefore, the ECOWAS Parliament is now urging “encryption enthusiasts to guard against the risk of theft.”

The report also lists other assumed risk factors faced by users of encrypted assets. These include the irreversibility of some encrypted transactions, the lack of central authority to monitor or control transactions, and the concentration of assets in the hands of a few people.

What is your opinion on ECOWAS’s warning about the risks of using cryptocurrencies? Tell us what you think in the comments section below.

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