The Central Bank of Kenya Governor has said that cryptocurrencies have a place in the current economy and this needs to be mapped out.
According to the governor, bitcoin and other cryptocurrencies seem more like a speculative asset than anything else, which may point to the direction the regulator is considering when it comes to regulation.
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Speaking during an interview, the governor, Patrick Njoroge, said:
“In terms of cryptos, we have to appreciate that the technologies they represent are very interesting and very good. From a technological perspective, there is something there.”
The governor has, for the longest time, been a critic of cryptocurrencies in general which has seen the regulator impose restrictions and warnings to banks to stay away from cryptos.
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As a result, cryptocurrencies have largely remained unregulated in Kenya despite the country the most bitcoin maximalist country in the world and among the largest adopters of cryptos in Africa.
Speaking about their potential and risks, the governor said:
“Cryptocurrencies do have a place, but it has to be clear that it is a place that has properties. For instance, you need to be concerned about the potential negative side effects of this – support for illicit transactions.
You need to have them in a place where those sort of concerns are taken care of.
Frankly, it has looked more like a speculative investment.” ~ Patrick Njoroge, Governor, CBK
The governor highlighted that CBK is in talks with its counterparts around the world concerning cryptocurrencies, and the fact that CBK is also involved in these high-level talks on the margins. His comments may likely provide insights into how governments around the world are looking at cryptocurrencies around the world and how to regulate them.
There has been talk of Kenya considering regulating cryptocurrencies, and from the governor’s comments, it is highly likely that if such regulations happen, bitcoin and cryptocurrencies will be labelled and regulated as an investment (or security) asset.
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