While everyone is looking forward to adopting the digital currency technology or digital currency itself, Kenya is not in a hurry. The Governor of Central Bank of Kenya, Patrick Njoroge has recently warned that the country should not rush into adopting virtual currencies yet. He believes that the country may not be ready to handle the complications posed by digital currency without proper regulatory setup.
Riding on the success of mobile payment player, MPesa a product of Safaricom, many Bitcoin companies are trying to replicate the same model in the country. Not to mention an upsurge in the Rebittance (Bitcoin-based foreign remittance) industry in Kenya and other African nations. The low transaction charges combined with faster transactions makes digital currency an attractive option for users compared to conventional services. However, the Governor of Central Bank of Kenya seems to be stuck on its unregulated nature and its potential of being used by terrorist organizations to fund their activities due to its pseudonymity.
According to reports, Patrick Njoroge was speaking at Mind Speak , a monthly interactive forum organized by Aly Khan Satchu an Investment Analyst when he made these comments. He is also said to have expressed optimism about the country’s expected economic growth this year. The Kenyan economy according to Patrick is expected to register an annual economic growth of about 6 percent, thanks to better yields in agriculture sector following by an increase in tourist inflow.
However, the Central Bank of Kenya seems to be ignoring the fact that the country has a significant population without access to any form of financial services. Bitcoin-based mobile payment and fund transfer services can be much cheaper than the widely used MPesa service, which would ultimately benefit the citizens. Central Bank is also concerned about banks
But digital currency is not the only […]
