Kenya Central Bank Governor Reiterates His Opposition to Cryptocurrencies – Emerging Markets Bitcoin News

Kenya’s central bank governor reiterated to Kenyans that they should be cautious about cryptocurrency trading and transactions. Financial institutions that support cryptocurrency transactions could lose their licenses, the governor warned.

Crypto Trading is Beneficial for a Few

Patrick Njoroge (the governor of Central Bank of Kenya) reiterated his opposition to cryptocurrency transactions. He also advised Kenyans to avoid investing in volatile assets such as cryptocurrency.

In remarks published by the East African newspaper, Njoroge — who was addressing Kenyans that attended the World Consumer Rights Celebration Day — suggested that investing in cryptocurrencies is only beneficial to a few people. He explained:

People are very excited about crypto because they think it’s a great investment because the prices will go up rapidly and they expect a large return on their money. That is also why I think we have to say that every winner has hundreds of losers.

Njoroge pointed out, too that cryptocurrency transactions may not be regulated and could even be considered illegal. The governor is quoted in the Kenyan newspaper’s report warning financial institutions that are 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 being drawn to digital currencies. Reports out of Kenya suggest that CBK warned clients involved in cryptocurrency trading by urging them to take precautions.

The East African report states that the CBK won’t encourage crypto transactions unless the government has enough protections.

“We are working with other players and regulators around the world to make sure that space is safe,” Njoroge was quoted explaining.

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Terence Zimwara

Terence Zimwara was a Zimbabwean award-winning journalist and author. He is a prolific writer on the economic woes of African countries, as well as digital currencies that can be used to provide an escape path for Africans.