Topic: Remain decentralized with crypto or centralized with banks. - page 2. (Read 352 times)

Well to this point even as it is debatable with the disparity between charges for the amount of money being deposited or transacted but it doesn't really relate to being poor or rich because the rich also sometimes have to do a transaction below the usual large amount like 10,000 and get charged 50 naira as the new policy is stipulating. In order words, the law is blind to whoever comes to it. My point is that regarding the charges, it does not respect the rich nor poor, is like the daily requirement for mobile fiat withdrawal which is put at same level for every customer depending on the bank you operate with.

I'm saying that the Nigerian government doesn't really bother about providing jobs for people to be able to take care of the bills levelled on their shoulder rather they keep increasing the price for every service rendered. Moreover, I don't understand why you have to be charged for depositing money to your account where it is even serving as a loan to them because they use it for business and don't pay you returns but withdraw different kinds of charges monthly in the name of account servicing and maintenance  

Only if everyone understood their own Governments never wanted the better for their citizens and in many (probably all) countries it is all about power, influence, stealing and corruption.  And if anyone believes a centralized bank will ever want to do good, no offense but they are fools.

But I see people complaining about this transactional fee.  This makes me wonder, and would be great if someone from Nigeria could answer because I do not get it really.  How is Bitcoin more affordable than a bank, even with this fee, if we consider Bitcoin sometimes has some pretty hefty transaction fee premiums?  My last few transactions have gone through with over $0.1 per transaction in fees.  Is it really better than what the cost this 'stamp duty' inquires?

This is so debatable.  Think about it, you have a billion Naira and you have to pay 0.1% to move your money while others have to pay N10 or N50 or whatever.  Is it fair?  Creating a fair system is insanely hard, probably even impossible because if you get to pay more as a rich guy then why do you have to pay more?  Because your wallet is thicker?  Because you worked hard (yes, I know, many of the rich do not like being asked about their first million)?  On the other hand, I get what you are saying.  Paying 0.1% for N10,000 and someone else paying 0.0001% for N10,000,000 is unfair.  To me, both opinions are just as valid.

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Regards,
PrivacyG

The above statement is absolutely confirm to be true as a matter of fact I was  also notified by a pop up notification through the application and I was how could government induced such statement or such transaction fees. Maybe they found much transactions via the app so they decided to have control over the app, this simply shows that there would be less active from the app after today being the implementation day.

Government trying to make things worst over some poor citizens of our country.

According to what I noticed, CBN has its own rate, banks have their own rates and parallel market rate is also different. I remember last year, many months ago when I wanted to make a cross border transaction of over $100, CBN in a month or two months before that time made it mandatory for all banks to reduce naira credit card international monthly spending to $100. My bank rate for the naira to dollar transaction (the bank I used) was around 460 and 480, CBN rate was 410, parallel market was around 520. The rate is slightly different from bank to bank.

Because I got no option as I wanted to spend more than $100, I make use of Astropay virtual prepaid card, all I noticed was that making use of third party like Astropay for the payment, parallel market price of around 1 dollar also almost equals to 520 naira (parallel market price) was deducted from my bank account to fund the virtual card before making the payment.

After 25 transactions, irrespective of the amount to be transferred, 10 naira will be deducted for each transaction.

No country that doesn't have issue for management of inflation and i believe that what your country is experiencing other countries experienced more your country. For now no country is bad economical free. Some African countries their is no charges of taxation and still people living in those areas are still complaining of hardship. What will resolve the issues of country experiencing of hardship is from the government management. Any increase any country experience is from the government, because of them is greedy for money.

Did you know that until now I did not use a bank account. I have used it once in my life in 2016, and even it lasted for 6 months in an account filled account less than $50. After I got to know cryptocurrency until now I always cashed it. Fiat is just an alternative when I need to buy some essentials, it's all generated from crypto. The rest is still safe in Bitcoin today.

You see, the simple reason is because I have complete faith in crypto, and I have lost all confidence in keeping my money in the bank. Btw, I'm still fine, and never had interest like other bank users. I think this is the freedom that is essential and suitable as I have been looking for all this time.

Bro..
You realize that this is how Bitcoin works too, right? Everyone pays the same for one tx, no matter the amount!


Well, this makes sense, so does this mean if I'm a foreigner and I get into a bank and they exchange my $ for Naira I get fleeced by about 30%?
Nice, reminds me of traveling abroad in the '90, always checking the real and official rates.
 

Pure curiosity, how much is the fee after this? Or it depends on the amount cause if it's like that it's a real pain in the ass to understand it.

Kuda is an online microfinance bank, unlike commercial banks that have thousands of workers to pay monthly salary. The money Kuda will spend on maintenance and other things will be significantly reduced. It is given license by the central Bank of Nigeria but spending less on workers and services if compared to commercial banks.

26th transactions and above are not free. Kuda is widely used by people buying and selling crypto, they can make over 100 transactions monthly. Also some people and business organizations can make over 25 transactions monthly.

The first Visa card is free, but after expiration, the renewal is around 900 naira to 1000 naira (within that price range but I have forgotten the exact amount)

That is what Nigeria has turned to, even the rich people will be favoured while the poor is not in this regard. I do not know much about this yet, but if just 50 naira will be deducted from  transaction above 10000 naira, even anyone that transferred 5 million niara will only have 50 naira deducted from the total amount received, that is stupid in my opinion too because the rich are favoured.

You used the CBN rate for your calculation, but we Nigerians know that is not what is actually happening, parallel or black market rate is used.

Dollar to naira is 415.4 today, using CBN rate, but I exchanged dollar to naira at 612 the last time which was few days ago. People buy and sell dollar at higher rate if compared to the CBN rate.

Always beware of what is free


My calculator says 12 cents but, anyhow, the tax should apply to every transaction over 24$ which is really really stupid.
I remember a while ago how everyone said that apps and mobile banking are revolutionizing Nigeria's banking and helping the unbanked, and now you have taxes for transactions below 25$? This is going downhill pretty fast.

I believe this article is orinated from Nigeria. Because is a Nigeria Bank although I do not know it it has branches in the international arena. OP, you have to understand something, base on your topic, crypto currency has not been legal in Nigeria and the people that are using crypto are much, just like my community as for now I am the only one has bitcoin so to what extend people leave centralized bank currency to crypto currencies. But if it is a country whereby the government approves to use crypto for all the citizens then it will be very easy for one to focus only on crypto currency (bitcoin), as it is, even though you have bitcoin you can not use it to buy what you want in the Nigerian State unless the thing you want to buy is accepted by the seller to pay crypto if not your bitcoin will still be converted/transferred to a centralized bank for them to cut the amount that the government asked them to cut. so, as it is all the same.

This is like what the charges go for the use of mobile apps to transact with fiat. I think the government of Nigeria is trying to generate miscellaneous income from the pucket of citizens. Agreed that taxes should be paid but the ones remitted are not judiciously used. There is also the increase in VAT that goes down to increase in charges on phone calls, internet data usage and right down to increase in food stuffs and shelter. We are just witnessing high inflation rate that is it.

Kuda said it is in accordance to the Federal Government’s stamp duty act. Kuda gains nothing from it.


The monthly 25 transactions are still free.

50 naira equals to $0.082.

This is to all user of the microfinance bank "Kuda" that taking effect from the 15th of July 2022 the bank will begin the deduction of #50 stamp duty as instructed by the government on every transaction made that is above the sum of #10,000. this could take us some daysy back to how Kuda bank has being a zero transaction fee bank for it first twenty five transaction made within a month but has now declare the cost to be deducted from it user on every said amount.


The governments aren't making things easier for the comfortability of the citizen, if one of the reasons why the microfinance banks which are private and Kuda a low or zero interest transaction fee bank can make the people taste the affordability of every aspect of the economic and financial circumstance in providing individuals and businesses to have an itch free experience in running a day to day transaction without indescriminate deductions from user's account.

All the said has been done all about Cryptocurrency with the first introduced one "bitcoin" was aimed to ease and lessen the burden of cross boarder transactions charges, securing privacy and running a decentralized digital currency and network on the blockchain with bitcoin make us has this unique benefit from the rule of government over our financial trust,

That's one of the reasons why using a traditional fiat system irregardless of bank, CBDC, or whatever has thesame implications to get altered by government but bitcoin has been a thick bone on their neck to control or regulate and i therefore encourage the use of bitcoin in the running of our economy which cannot be hindered by government just as it has power over banks regardless of types.