The Eastern Caribbean Central Bank (ECCB) encourages citizens and residents of the Eastern Caribbean Currency Union to conduct proper research and due diligence checks before investing in cryptocurrencies.
Speaking on this week’s episode of ECCB Connects, Blockchain Researcher and Scientist, Dr Daniel Joseph, outlines the benefits and risks associated with investing in cryptocurrencies. He says a key feature of cryptocurrency is the decentralised financial system which allows an individual to move money across borders and without the restrictions of a financial regulator or institution.
According to Dr Joseph, some advantages of cryptocurrencies include: free and quick movement of funds, and easy access to financial services, products and instruments. He cautions, however, that cryptocurrencies are quite volatile and involve high risks. Furthermore, the decentralised system on which the currency operates does not provide any recourse or layer of protection to the investor.
In addition to the popular Bitcoin, Dr Joseph says other types of cryptocurrencies include: Ethereum, Tether, and Ripple; noting that each type affords various offerings depending on the customer’s requirement. He advises that, prior to investing in these types of currencies, people should conduct thorough research. Dr Joseph further advises that one should not invest more than one is willing to lose as there is no protection or recourse for retrieving lost investments via the platform.
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