Central Bank of Kenya Governor: Kenya must go slow in adopting bitcoin

Regulation | May 31, 2016 By:

Central Bank of Kenya Governor Patrick Njoroge has recently warned that the country should not rush into adopting digital currencies such as bitcoin yet.

Njoroge has recommended that the country must go slow in adopting digital currencies, adding that Kenya currently doesn’t have systems and capabilities to handle the technology.

This follows on from a public notice issued in December 2015, in which the central bank observed: “Bitcoin is a form of un-regulated digital currency that is not issued or guaranteed by any government or central bank. Domestic and international money transfer services in Kenya are regulated by the Central Bank of Kenya Act and other legislation. In this regard, no entity is currently licenced to offer money remittance services and products in Kenya using virtual currency such as Bitcoin.”

The notice further highlighted the risks associated with digital currencies including their use for money laundering and terrorism financing, loss of money in the event of shut down of exchanges, and high volatility in value of virtual currencies exposing users to potential losses.