The National Bank of Ethiopia (Central Bank of Ethiopia) is warning citizens not to engage in ‘illegal’ transactions in digital currencies.
The National Bank of Ethiopia (NBE) said digital currencies like bitcoin have not been recognized by the NBE as a transactional and payment method, state-affiliated Fana Broadcasting Corporate (FBC) reported.
‘The national currency is the Birr, with any financial transaction in the country to be paid in Birrs, according to the law.’
– Statement, National Bank of Ethiopia
The picture above of the statement was shared on twitter by a crypto enthusiast.
The bank warned that digital currencies are being used to conduct informal financial transactions and money laundering schemes in the Ethiopia.
The NBE called on the public to refrain from trading in digital currencies and to report to authorities when they see such illegal transactions.
In April 2022, Ethiopia reported 36% year-over-year (YoY) inflation rate.
High inflation rates have largely contributed to affected residents of some of these countries to adopt newer forms of currency, such as bitcoin, that offer higher levels of stability amid the devaluation of their currencies.