The Nation Newspaper, some days ago, reported that Nigerian traders were now adopting Oduwacoin as a payment method for their businesses. This was as the naira shortage in the economy continued to affect the purchasing power of their customers.
A frozen foods seller, who identified herself as Sadiat Ajoke, said if not for her brother-in-law, who introduced Oduwacoin to her, she would not have anything to sell, as customers had no cash to patronise her.
“Nobody is against the government instituting a cashless policy, but I wonder if we are ripe for it. The banks are not reliable, and nobody is here to open business and be counting losses,” she added.
Another trader, Ikechukwu Emenike, who runs a boutique, said he prefers to receive payment in Oduwacoin because it’s fast, efficient, secure, and more reliable.
“There’s no money in the economy, and to make transactions now, it takes several hours, and sometimes days, to be successful. Other times, you may be unlucky and the transactions would come out unsuccessful. I can no longer deal with such difficulty, and that’s why I choose Oduwacoin,” he stated.
How Oduwacoin, other cryptos can be leveraged amid crisis
Cryptocurrencies, such as Bitcoin, Ethereum, and others, have several potential advantages during periods of crisis. First, their decentralized nature makes them resistant to government manipulation, corruption, and inflation, which can be vital during times of economic or political instability.
Secondly, the transparency of cryptocurrency transactions recorded on the blockchain makes them more resistant to fraud and corruption. Thirdly, cryptocurrencies are accessible to anyone with an internet connection, making them useful to people who do not have access to traditional financial services. Fourthly, cryptocurrencies can process transactions quickly and efficiently, which is important during times of crisis when time is of the essence. Finally, some investors see cryptocurrencies as a way to protect their assets during times of economic uncertainty.
After a crisis, once the primary concerns of securing safe water, shelter, and medical aid have been addressed, cash-based interventions (CBI) are widely recognized as crucial and efficient measures to support individuals in rebuilding their lives. These interventions enable people to purchase essential items, thereby restoring their independence and dignity, and also contribute to the revival of local economies. This semblance of normalcy helps people to cope with the aftermath of the crisis.
When individuals are compelled to leave their residences, they typically depart with only the necessities, leaving behind their ability to earn and expend. The aim of cash-based interventions (CBIs) is to protect refugees by mitigating the risks they face and sustaining their capacity to expend. As long as there is a reliable market and a secure means to furnish refugees with cash or vouchers, CBIs can be implemented in various contexts.
The implementation of cash-based interventions (CBIs) can reduce the likelihood of harmful coping mechanisms among displaced individuals, such as engaging in survival sex, child labor, family separation, and forced marriage. In addition, CBIs can have a positive impact on the local economy and promote harmonious coexistence with host communities.
Nevertheless, the traditional approach to CBIs presents significant logistical obstacles, such as ensuring appropriate timing, transparency, and managing high banking fees.
Cryptocurrencies have a history of reaching locations beyond the reach of traditional financial systems, providing financial services to individuals who cannot avail themselves of conventional banking methods. Banks frequently decline to operate in conflict zones and are frequently restricted by geographical borders in areas experiencing ongoing violence, leaving affected individuals with no means of accessing necessary funds.
Conventional cash-based interventions (CBIs) may take several weeks to transfer funds between organizations, banks, and recipients. In contrast, verified recipients can receive funds instantly through cryptocurrency transactions.
Using cryptocurrency not only saves time, but it can also save money, as bank transfers and other digital remittance services are often more expensive than cryptocurrency transfers. (Our transfers cost less than 10 cents per transaction).
Furthermore, since all transactions are permanently recorded on a public ledger, the entire donation process is entirely transparent.
However, cryptocurrencies are not without risks. They are subject to volatility and regulatory uncertainty and can be susceptible to fraud and hacking. Furthermore, governments and regulatory bodies around the world are still grappling with how to regulate cryptocurrencies, which can create uncertainty for investors.
