Ethiopian Central Bank Urges Residents to Stop Engaging in Crypto Transactions – Regulation Bitcoin News

National Bank of Ethiopia (NBE), has stated that it doesn’t recognize cryptocurrency as a valid method of payment, and that citizens should not use them. It insists that the legal way to settle transactions in Ethiopia is with the local birr currency.

Illegal Transactions

The Ethiopian central bank has warned citizens against engaging in “illegal” cryptocurrency transactions, a report has said. According to the report, the central bank does not yet recognize bitcoin and other cryptocurrencies as payment methods.

In its report, the state-affiliated media outlet Fanabc refers to a statement from the National Bank of Ethiopia (NBE) which reminded the country’s residents that the birr currency remains Ethiopia’s only legal tender.

“Ethiopia’s national currency is the Ethiopian Birr, with any financial transaction in Ethiopia to be paid in Birrs, according to the law,” the central bank reportedly said.

Residents Urged To Report Crypto Transactions

Ethiopia is not a country that has banned cryptocurrency, as many African peers have done. However, it does allow for the occasional use, and has opted to wait and see. However, this approach did not stop the Ethiopian government establishing a working relationship to Cardano.

The embrace of Cardano as well as the government’s apparent warming to blockchain technology has not stopped the NBE from repeating the claim that cryptocurrencies are primarily used for money laundering schemes. These transactions were encouraged by the central bank, who also advised residents that they should be reported to authorities if they are found.

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Terence Zimwara

Terence Zimwara, a Zimbabwean journalist, writer and author who has been awarded the Zimbabwe Booker Prize. His writings have covered the economic problems of several African countries and how digital currency can offer an escape route.