Digital Currencies And Sustainability Of The Nigerian Financial Sector.

Abstract

This paper seeks to examine the impact of digital currencies and the sustainability of the Nigerian financial sector. The research was carried out with the use of primary data (questionnaire) administered among five banks in Lagos State. Two hundred copies of questionnaire were randomly administered on the staffs of these banks based on probability, convenience, and accessibility to staffs of each bank surveyed. However, one hundred and forty-seven (147) were returned by the respondents. Regression analysis, ANOVA was used for data analysis. Findings revealed that the use of digital currencies such as Bitcoin, Ethereum for the value and security of online transactions is gradually taking over Nigeria’s financial landscape. The study, therefore, concluded that digital currencies should be allowed to thrive in the Nigerian financial space, more so, it will mitigate the escalating rate of financial fraud and other economic crimes bedeviling the system. The paper recommends that the Federal Government through the Central Bank of Nigeria should legalised digital currencies because these currencies are gaining proclivities in this modern era as a vital medium of business transactions and advocate public orientation for a better understanding of how the currencies work and for subsequence advance in Nigerian economic prosperity.