The head of Kenya’s financial regulator said officials are under pressure from crypto enthusiasts to convert the country’s reserves into bitcoin.
At a meeting of the Kenyan Parliament, Central Bank Governor Patrick Njoroge lamented that even in his inner circle there are many people who are persistently pushing him to adopt bitcoin and talk about the benefits of cryptocurrencies. But this is only good for crypto enthusiasts, says Njoroge.
The official called the idea insane. Public investment in bitcoin comes with a high risk of losing funds due to the high volatility of cryptocurrencies, Njoroge said. If during his tenure the country takes the path of legalizing bitcoin, the official promises to go to jail for opposition. Njoroge said that Kenya can legalize cryptocurrencies only if they solve economic problems, and not because of the general hype around digital assets.
“Can cryptocurrencies be called the best means for making settlements and payments? Are cryptocurrencies really safer than a bank account? The answer is no. To accept bitcoin at the state level, you need to carefully analyze the entire cryptocurrency sector and make sure that crypto assets really solve some specific problems, ”said the governor of the Kenyan central bank.
The regulator has previously urged local banks to exercise caution with digital assets. The Central Bank is worried about the increase in the number of fraudulent cryptocurrency projects, due to which Kenyans lose their investments. Despite the negative attitude of the regulator towards cryptocurrencies, at the beginning of the year, the Central Bank of Kenya opened a public discussion about launching its own digital currency.
Source: Bits
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