1.0 Introduction
1.1 Background of Study
In the early 1980s, the development of network technology, the costs of telecommunications and data processing were reduced, and electronic payments became more useful with the appearance of credit and debit cards, which for several years (after their appearance) became the most popular electronic small transaction tool. Also, the development of encryption has played a major role in successful card payments. This innovation is considered as a second degree in the electronization of transactions. From the aspect of the development of e-payment method, digital currency is not physically printed by the Central Bank. For now, digital currency is considered with its own rules of the game. In the literature, all those who support the use of Bitcoin underscore the characteristic as a currency that does not cause financial crises. Namely, the view is that banks can print more money to cover their national debt, thus devaluing their currencies; Bitcoin does not function in such a way.
Digital currency constitute as a subset of alternative currencies or better referred to as digital currency is a digital asset from block chain technology which is designed to function as a medium of exchange using cryptography to execute transactions and to control the creation of additional units of the currency. The evolution and advancement of economic revolution and the need to sustain the economy through advanced financial technology, through a new form of digital currency using encryption techniques to regulate the generation of units of a currency and verify the transfer of funds operating independently of a central bank, predicated the introduction of crypto-currency into the Nigerian economy.
Consequently a digital currency is beginning to gain wide information and acceptance; and one of the most famous is bit coin. Other digital currencies include Swiss coin and one coin.bit coin, Swiss coin and one coin are crypto currencies or digital currencies created and controlled using cryptography.
Currently countries such as Brazil, Canada, Uk, Germany, south Korea, India have introduced Automated Teller Machines (ATM) for Digital currency so as facilitate banking technology. In Nigeria the patronage and acceptance of digital currencies is gaining wide popularity. The owners do not require the central bank; nor any physical bank. Once you are a subscriber, you only know yourselves and they give you a bit of the bitcoin which can be converted to cash and used for payment in some countries. Currently bitcoin is considered the best among all other crypto-currency, the bitcoin is adjudged the pacesetter. Mining is another type of cryptocurrency.
Therefore, in Benin, Nigeria where the research was carried out, the activities that was conducted is to appraise of Digital Currencies for Real Estate Development and Finance.
1.2 Statement of Problems
Digital currency constitute as a subset of alternative currencies or better referred to as Crypto currency is a digital asset from block chain technology which is designed to function as a medium of exchange using cryptography to execute transactions and to control the creation of additional units of the currency. The evolution and advancement of economic revolution and the need to sustain the economy through advanced financial technology, through a new form of digital currency using encryption techniques to regulate the generation of units of a currency and verify the transfer of funds operating independently of a central bank, precipated the introduction of crypto-currency into the Nigerian economy. Consequently a digital currency is beginning to gain wide information and acceptance; and one of the most famous is bit coin. Other digital currencies include Swiss coin and one coin.bit coin, Swiss coin and one coin are crypto currencies or digital currencies created and controlled using cryptography.
The entry of Digital currency into the Nigerian financial sector is gaining wide popularity but with fears and doubt about its functionality in since there is no regulatory framework from the apex bank. But there is wide call for CBN to commence appropriate regulatory action. However it is pertinent to note that it is the CBN’s monetary policy restrictions on foreign exchange, that have led Nigerians to innovate the use of bit coin to access foreign exchange. Therefore the eradication of the currency would be viewed as irrational and unworthy of a country which seeks to promote domestic industry and innovation. Consequently it may be found appreciable if the join several other countries of the world to approve its operation in Nigeria. Therefore the problem confronting this research is to determine the effect of Digital currency on the value of the Nigerian naira.
1.3 Aim and Objectives of Study
The aim of the study is to appraise of Digital Currencies for Real Estate Development and Finance in Benin, Nigeria. In achieving this aim, the following specific objectives were laid out as follows:
- To determine the effect digital currencies on the value of the Nigerian Naira
- To examine the factors affecting of Digital Currencies for Real Estate Development and Finance in Benin, Nigeria
- To identify the possible problems associated with property development as a result of the Act.
1.4 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- What do you understand by Digital currency?
- What are the effect digital currencies on the value of the Nigerian Naira?
- What are the problems associated with property development as a result of the Act?
- Does real estate Land use zoning control affect price mechanism of land and buildings?
- What should be the appropriate technique for valuing properties compulsory acquired for compensation purposes under the Act?
1.5 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
H0: There is no significant effect of Digital Currencies on Real Estate Development and Finance in Benin
H1: There is a significant effect of Digital Currencies on Real Estate Development and Finance in Benin
1.6 Significance of Study
The increasing wave of digital currency into the economy with its attendant effect propels a study of this nature to facilitate better understanding of this new concept and to determine its effect on the value of Nigerian money. This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.
1.7 Scope of Study
The study focuses on the Appraisal of Digital Currencies for Real Estate Development and Finance in Benin, Nigeria.
1.8 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Research material: availability of research material is a major setback to the scope of the study.
- Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
1.9 Definition of Terms
Cryto Currency Defined: Cryto currency constitute as a subset of alternative currencies or better referred to as Cryto currency is a digital asset from block chain technology which is designed to function as a medium of exchange using cryptography to execute transactions and to control the creation of additional units of the currency.
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