Central Bank of Kenya Says its Open to Banks Using the Blockchain Technology

The CBK is open to banks using new and emerging technologies in Kenya
The CBK is open to banks using new and emerging technologies in Kenya

Despite the Central Bank of Kenya being open about its stand on cryptocurrencies, it seems the regulator is also fully alert to the benefit of these emerging technologies and seems to have an open stand towards the blockchain technology.

In a statement, the Central Bank of Kenya (CBK) governor, Patrick Njoroge said:

“CBK is of the opinion that despite the ubiquitous positive influence of technology, there lies a potential of great risk in the event that the technology fails or is misused by unscrupulous individuals. There is thus the need to ensure that robust controls are in place to ensure that the risks and opportunities associated with emerging technologies are balanced.”

The above stand on the blockchain technology has come after the CBK received applications from financial institutions that want approval and licensing of blockchain-based products and services.

“A number of banks are currently working on products hinged on blockchain technology and we think that they offer a lot of promise,” said Njoroge during the ICIFA conference in May 2018.


CBK Stand on Cryptocurrencies Remain

The CBK stand on cryptocurrencies however remains unchanged. The circular that went out to banks earlier in the year cautioning them to stay away from virtual currencies remains in force. This says a lot about the regulator’s stand on these new digital currencies taking over the world.

“We will remain open to emerging technologies with an underlying philosophy of maximizing opportunities while minimizing risk,” said the governor.