An overview on the risk associated with cryptocurrency and its applications

Abstract

The global economic system is amazingly complicated. At its fabric, this superficially com
plex system disintegrates into a set of few rules that sum up how humans trade their 
notions of value. The Internet has changed the entire game for the age-old systems, so 
it is no surprise that it has caused immense disruption to the financial system too. It 
does not seem like technology is going to stop its disruption to financial systems any
time soon. Blockchain eliminates the traditional role of a middleman which is required in 
financial institutions like banks that are supervised by authorities. An important feature of 
blockchain is that it is public; everyone can see it because it acts as a public ledger which is 
updated after every transaction. Every transaction becomes a block which is then checked 
by others’ computer and approved. This paper examines cryptocurrency adoption factors, 
the challenges, the risk associated with it, Cryptocurrency Anti-Money Laundering Red 
Flags and the Nigeria economy.