The governor went a bit provocative on his outlook on cryptocurrencies saying:
“Frankly, it has looked more like a speculative investment. It could really be like tulips in the golden days or like the other speculations and bubbles we have had. You put money in it and hope you are going to get x returns in some months or years.”
Talking about central bank digital currencies (CBDCs), the governor said:
“I think from my perspective, the push came very much because of the private cryptocurrencies and the way they mushroomed. As central bankers, we sort of left felt out. We felt, maybe, this is our space.
Central banks however wouldn’t go in the same way that private coins would. Central bankers do understand their fundamental mandate and this obviously relates to price stability and other things.
The idea here is, could I as a central bank, true to its mandate, use this tool in a way to achieve efficiently the purpose that was set out in our charter.
I think that is where the conversation is today.”
The governor admitted that the central bank of Kenya should and will look at CBDCs and how this would be available to the public.