Kenya Central Bank Governor Reiterates His Opposition to Cryptocurrencies

Kenya Central Bank Governor Reiterates His Opposition to Cryptocurrencies – Kenyans should be mindful of the hazards involved with cryptocurrency transactions and trading, according to the governor of the Kenyan central bank. Financial institutions that encourage bitcoin transactions risk losing their licenses, according to the governor.

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Patrick Njoroge, the governor of the Central Bank of Kenya (CBK), has stated that his organization continues to oppose bitcoin transactions. Kenyan people should always be mindful of engaging in extremely volatile asset classes such as cryptocurrency, according to the governor.

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Njoroge, who was speaking to Kenyans at the World Consumer Rights Celebration Day, said that investing in cryptocurrency is only helpful to a few people, according to the East African daily. 

He elaborated:

“Some people are enthusiastic about cryptocurrencies because they see it as a type of investment in which they may make a large profit because prices are rapidly rising, and they feel they will receive a large return on their investment. But, I believe, this is why we say that for every individual who succeeds, there are hundreds who fail.”

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Njoroge further stated that cryptocurrency transactions are not only uncontrolled, but they may also be unlawful. The governor is mentioned in a Kenyan newspaper source, warning banking institutions that they risk losing their licenses if they are detected aiding bitcoin transactions.

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Even as more Kenyans are drawn to digital currencies, the CBK chief reiterated that the bank’s stance on cryptocurrencies has not changed. Previously, reports from Kenya suggested that the CBK had persuaded some banks to issue warning notifications to bitcoin traders.

According to the East African article, the CBK will only encourage bitcoin transactions if sufficient protections have been put in place to protect the public.

“We’re collaborating with other parties and regulators all across the world to ensure that space is secure,” Njoroge said.

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