Investors Developing Confidence in Bitcoin: Nigeria’s Apex Bank Plans Regulation
“Every investor settles in his area of superior confidence and that is the gap between the Nigerian investor and Cryptocurrencies,” Ekene Isiuwe.
“Every investor settles in an area of superior confidence and that is the gap between the Nigerian investor and Cryptocurrencies”. This assertion was made to Cointelegraph in a telephone talk with seasoned investment banker Stephen Ekene Isiuwe, a Business Professional with Investment One Financial Services Limited, Abuja on Tuesday November 24th, 2015.
Investors are a bit shy
Stephen Isiuwe is a Business Professional with Investment One Financial Services Limited, formerly known as GTB Asset Management Limited (GTBAM), the former investment and wealth management subsidiary of Guaranty Trust Bank Plc (GTBank), one of Africa’s leading Banks.
Having been in the industry for about two decades, Mr Isiuwe said that prior to this time the average Nigerian investor possessed a gullible approach to new investment opportunities and usually jumped at new options with unprecedented enthusiasm. This was true until about five years ago when the so called “wonder-banks” emerged with different brands of products that looked very promising, but when things eventually turned bad, there was no safety net to fall back to. That, in his opinion, is the reason for the relative reluctance in accepting bitcoin within the Nigerian population.
Investors are hungry for new Opportunities
Asked what in his opinion with the outlook of the local investor, he said that investors crave new opportunities so desperately like it has never been within the Nigerian investment sector. According to him, several factors have influenced the investors’ withdrawal syndrome from the Nigerian economic environment. He mentioned such factors as:
1. The absence of a direct policy direction
Six months into the tenure of the present government, the economic development policies are yet to be made known. This leaves room for a lot of uncertainty and fear as revealed by the inaction of even foreign investors within the Nigerian economy. As reflected in the Africa’s Business Attractiveness Index Ranking by Rand Merchant Bank on October 4th 2015, where the Country dropped from 2nd to 5th position in just Six months.
He stressed that the nation’s inability to conquer the Boko Haram terrorists so far leaves more to be desired within the minds of individuals and corporations who will want to put their resources into the economy.
It’s all about confidence
In his final analysis, Mr. Isiuwe insisted that the average Nigerian investor is searching for opportunities that are not directly dependent on the nation’s policies for now. Furthermore, investing in Bitcoin and other Cryptocurrencies remains one of such opportunities as long as a safety net of regulation can be put in place. This will safeguard against eventualities where institutions like the National Deposits Insurance Corporation (NDIC) could protect at least a portion of the investments when things go south.