Bitcoin’s condition in Kenya was murky. The Central Bank of Kenya (CBK) has warned about those who invest in Bitcoin over the years, saying that investors are not protected. Companies like Safaricom have also openly fought bitcoin trading in the country by cutting ties with BitPesa and Lipisha, which allegedly violate Safaricom’s money laundering policy as Bitcoin is not regulated by the CBK.
In the past few months, Bitcoin’s value has skyrocketed, reaching an all-time high every day. Well Kenyans didn’t want to be left behind and there have been reports of Kenyan Bitcoin investors earning up to Ksh 100,000 daily and this resulted in a gold rush that hit CBK Governor Dr. Patrick Njoroge, issued another warning at the end of last year.
“We have warned everyone that this is a risky endeavor and that the consumer will not be protected. It could very well be some kind of Ponzi scheme, I think you’ve seen prices go up and down in different places, “said Dr. Njoroge in an interview with The Standard. According to CBK, if Bitcoin collapses, the effects could lead to economic instability. he added.
Pyramid or no pyramid, we have to at least take that risk – Joe Mucheru
CBK has made it clear that they are not against the technology behind Bitcoin, blockchain, what they don’t like is Bitcoin itself. “The blockchain could have a future. We are working with our colleagues around the world on things that could lead to the use of this technology in a special way, ”said Dr. Njoroge in conclusion.
In an interview with Citizen TV, ICT Cabinet Secretary, Joe Mucheru showed his support for Bitcoin and the underlying technology blockchain. “When we look to the future, we are not lagging behind in certain areas such as blockchain technologies, we want to be part of this growth. We missed the internet, we need the blockchain, ”said the cabinet secretary.
Mr Mucheru went on to say that the CBK has a role to play in relation to cryptocurrencies in the country. “The central bank has a role and responsibility to play and I don’t think we’re going to argue about that. Whether we want to be there or not, it’s not our choice. The world is already moving in that direction. Pyramid or no pyramid, we at least have to take this risk. “
Joe Mucheru also said that Bitcoin is a technology that cannot be regulated, but the companies involved in it can be regulated. Mr. Mucheru’s demeanor puts him and the CBK governor on opposite ends. It will be interesting to see how this Bitcoin issue develops this year.