Kenya’s central bank governor has once again told Kenyans to be wary of the risks associated with cryptocurrency transactions and trading. The governor also warned financial institutions that support cryptocurrency transactions that they risk losing their licenses.
Crypto trading beneficial for a few
The Governor of the Central Bank of Kenya (CBK), Patrick Njoroge, has reiterated that his institution is still against cryptocurrency transactions. The governor also suggested that Kenyan citizens should always be wary of investing in highly volatile asset classes such as cryptocurrencies.
In comments published by the East African newspaper, Njoroge — addressing Kenyans attending World Consumer Rights Celebration Day — suggested that investing in cryptocurrencies only benefits a few people. He explained:
There are people who are excited about cryptocurrencies because they see it as a kind of investment that they can win big because the prices are rising fast, so they think they will see a huge return on their investment. But I think that’s why we’re saying that for every person who wins something, there are hundreds who lose.
Njoroge also pointed out that not only are crypto transactions unregulated, but such transactions can also be illegal. The governor is quoted in the Kenya newspaper’s report warning financial institutions caught facilitating cryptocurrency transactions that they risk losing their licenses.
Protection of the public
As previously reported by Bitcoin.com News, the CBK chief had clarified that the bank’s stance on cryptocurrencies had not changed even as more Kenyans are attracted to digital currencies. Before that, reports from Kenya speculated that the CBK had convinced some banks to issue warnings to clients engaged in cryptocurrency trading.
However, according to the East African report, the CBK will not encourage cryptocurrency transactions until sufficient safeguards are in place to protect the public.
“We are working with other players and regulators around the world to ensure the space is safe,” Njoroge was quoted as saying.
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Terence Zimwara is a Zimbabwean award-winning journalist, author and writer. He has written extensively about the economic problems of some African countries and how digital currencies can provide an escape route for Africans.
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