Report: Kenya Central Bank Governor Reiterates His Opposition to Cryptocurrencies

The Kenyan central bank governor has once again told Kenyans to be wary of the risks that are associated with cryptocurrency transactions and trading. The governor also warned financial institutions supporting cryptocurrency transactions that they risk losing their licenses.

Crypto Trading Beneficial to a Few

The governor of the Central Bank of Kenya (CBK), Patrick Njoroge, has reiterated that his institution still opposes cryptocurrency transactions. The governor also suggested that Kenyan citizens must always be wary of investing in highly volatile asset classes such as cryptocurrencies.

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:

There are people who are excited about cryptocurrencies because they see it as a sort of investment that they can win big because prices are going up quickly, so they believe they would see a huge return for their investment. But I think that is why we say for every person who wins something, there are hundreds who lose.

Njoroge also pointed out that crypto transactions are not only unregulated but such transactions could also be 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.

Protecting 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. Before that, reports from Kenya speculated that the CBK had convinced some banks to issue warning alerts to clients engaged in cryptocurrency trading.

However, according to the East African report, the CBK will only encourage cryptocurrency transactions once there are enough safeguards to protect the public.

“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 is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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