Governments across Africa are striking a firm tone concerning bitcoin and cryptocurrencies, with Algeria’s congress expected to ban all cryptocurrencies, and Kenya’s central bank warning against the risks of cryptocurrency, and an advisor to Ghana’s ministry of communications describing “fear of the unknown” as the principal barrier to higher adoption of virtual currencies. In other news, a Kenyan man has negotiated to pay the ‘goat portion’ of his dowry using bitcoin.
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The Governor of the Central Bank of Kenya (CBK), Dr. Patrick Njoroge has warned Kenyans against the dangers and lack of protections afforded to cryptocurrency traders. Referring to a previous warning issued in 2015, Dr. Njoroge stated that the CBK “warned everybody that this was a risky venture and the customer is not protected. It could extremely nicely be a Ponzi scheme of a sort, I think you have noticed how the rates have gone up and down in different areas. Our point is that there is risk and it is essential that everybody knows that these risks can come back to haunt us and could have financial stability concerns.”
Regardless of the warning, Dr. Njoroge not too long ago expressed his hesitance to rush to regulate cryptocurrencies, describing the CBK as becoming “open” to innovations in monetary technologies. Speaking at the recent International Monetary Forum in Dubai, Dr. Njoroge stated: “If you’re the regulator, you have to be cautious that all risks are taken care of, like in cryptocurrencies, but we’re very open to innovation.”
The subject of bitcoin has been in Kenya’s news cycle recently, following Kenyan citizen, Anthony Mburu’s selection to spend a portion of his dowry making use of bitcoin. The young bitcoin miner negotiated to spend the ‘goats portion’ of his dowry utilizing bitcoins – and has so far paid the equivalent of 25 of the 100 necessary goats.
The 26-year-old Mr. Mburu quit university in 2010 only one semester into an engineering course. Mr. Mburu lately discussed his selection with Kenyan media, stating “Formal education is very good. It will give you an typical life. You’ll consume, have your mortgage, auto loan and all that — reside an typical life struggle via life to the finish.” Given that discovering the cryptocurrency, Mr. Mburu states that his entire life has come to revolve about bitcoin. “Everything is bitcoin. Where I live, bitcoin what I drive, bitcoin investment, bitcoin. It will be a bitcoin wedding,” he mentioned.
Ghana’s cybersecurity advisor to the ministry of communications, Albert Antwi Boasiako, has described “fear of the unknown” as the principal barrier to greater cryptocurrency adoption throughout the African nation. Speaking at the current Ghana Blockchain Conference, Mr. Boasiako stated “We have our fears about cryptocurrency but discussions are still going on. Our nation is nonetheless hesitant to adopt Bitcoin as a legal tender is the worry of the unknown.”
Mr. Boasiako emphasized the need to have for Ghana’s tech community to mobilize in order to demystify cryptocurrencies, stating “We are battling worry, the state does not want to move forward due to the fact it doesn’t know what’s there. To demystify cryptocurrency, we need to have a community-driven agenda. We require to strategically demystify the misconceptions around cryptocurrency and get it integrated into the government digitization agenda.” Mr. Boasiako suggested the establishment of a “working group on cryptocurrency that has members from stakeholders like the Bank of Ghana,” recommending that such a body must closely monitor developments in the sphere of cryptocurrency regulation in other jurisdictions.
Last month, it was reported that Algeria’s congress had begun to contemplate new monetary legislation that would see all cryptocurrencies banned all through the nation. The ‘2018 Finance Bill’ states that “The obtain, sale, use, and holding of the so-referred to as virtual currency is prohibited. The virtual currency is the a single utilised by Web users by means of the web. It is characterized by the absence of physical support such as coins, banknotes, payments by check or bank cards,” specifying that “Any violation of this provision is punished in accordance with the laws and regulations in force.”
An accompanying memorandum emphasizes the concerns that bitcoin’s possible anonymity sparks amongst Algerian lawmakers, stating “Algeria hopes to establish a stricter manage more than this type of digital transaction, which can be used for drug trafficking, tax evasion, and cash laundering thanks to the assured anonymity of its users.” The document asserts that regardless of cryptocurrencies having “long been the prerogative of illegal transaction,” they are in a position to “get rid of their bad reputation in democratizing and attracting a wider audience.”
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Published at Mon, 27 Nov 2017 20:55:16 +0000