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As the regulatory debate continues mainly between government agencies and cryptocurrency protagonists, the Central Bank of Kenya (CBK), through its Governor, Patrick Njoroge joins in the campaign towards slowing down the propagation of Bitcoin and cryptocurrencies.
A Recurrent Warning
Njoroge told legislators on Thursday that he had sent a circular to all banks warning them on the dangers of dealing in virtual currencies. According to him while addressing the National Assembly Committee on Finance at Parliament Buildings, the circular cautioned the banks against dealing in virtual currencies or transacting with entities that are engaged in virtual currencies.
This is not the first time that the CBK is getting involved in moves to discourage the country’s citizens from getting involved in what has been popularly described as a risky venture by most regulators. It can be recalled that in December 2015, the consumer protection concerns led CBK to issue a notice warning the public against virtual currencies such as Bitcoin.
These warnings are not peculiar to the CBK alone or to Kenya. In a previous article on CCN, it was reported how the Manager at Nigeria Deposit Insurance Corporation (NDIC) warned citizens of the lack of insurance on any investment in virtual currencies, qualifying them as very risky ventures that are not backed by any physical commodity, such as gold or other precious stones.
