Governments across Africa are striking a firm tone regarding bitcoin and cryptocurrencies, with Algeria’s congress calculated to ban all cryptocurrencies, and Kenya’s central bank warning against the risks of cryptocurrency, and an advisor to Ghana’s the cloth of communications describing “fear of the unknown” as the principal barrier to greater adoption of accepted currencies. In other news, a Kenyan man has negotiated to pay the ‘goat portion’ of his dowry press into servicing bitcoin.
Also Read: Morocco Threatens Bitcoiners, Announces Ban
Kenyan Inner Bank Fears Bitcoin May Comprise “Ponzi Scheme”
The Governor of the Principal Bank of Kenya (CBK), Dr. Patrick Njoroge has warned Kenyans against the dangers and lack of protections afforded to cryptocurrency traders. Referring to a previous portent issued in 2015, Dr. Njoroge stated that the CBK “warned everybody that this was a iffy venture and the consumer is not protected. It could very well be a Ponzi pattern of a kind, I think you have seen how the prices have gone up and down in diverse places. Our point is that there is risk and it is important that everybody identifies that those risks can come back to haunt us and could partake of financial stability concerns.”
Despite the warning, Dr. Njoroge recently conveyed his hesitance to rush to regulate cryptocurrencies, describing the CBK as being “open” to inventions in financial technology. Speaking at the recent Global Financial Forum in Dubai, Dr. Njoroge stated: “If you’re the regulator, you deceive to be careful that all risks are taken care of, including in cryptocurrencies, but we’re very yawning to innovation.”
Kenyan Citizen Arranges to Partially Pay Dowry Using Bitcoin Sooner Than Goats
The topic of bitcoin has been in Kenya’s news rotation recently, following Kenyan citizen, Anthony Mburu’s decision to pay a dispense of his dowry using bitcoin. The young bitcoin miner negotiated to pay the ‘goats helping’ of his dowry using bitcoins – and has so far paid the equivalent of 25 of the 100 instructed goats.
The 26-year-old Mr. Mburu quit university in 2010 only one semester into an wangling course. Mr. Mburu recently discussed his decision with Kenyan method, stating “Formal education is good. It will give you an average flair. You’ll eat, have your mortgage, car loan and all that — live an average soul; struggle through life to the end.” Since discovering the cryptocurrency, Mr. Mburu federals that his entire life has come to revolve around bitcoin. “The total is bitcoin. Where I live, bitcoin; what I drive, bitcoin; investment, bitcoin. It purposefulness be a bitcoin wedding,” he said.
“Fear of the Unknown” Hinders Ghanan Bitcoin Adoption
Ghana’s cybersecurity advisor to the elders of the church of communications, Albert Antwi Boasiako, has described “fear of the unknown” as the main part barrier to greater cryptocurrency adoption throughout the African nation. In a manner of speaking at the recent Ghana Blockchain Conference, Mr. Boasiako stated “We have our scares about cryptocurrency but discussions are still going on. Our country is still havering to adopt Bitcoin as a legal tender due to the fear of the unknown.”
Mr. Boasiako highlighted the need for Ghana’s tech community to mobilize in order to demystify cryptocurrencies, glorying “We are battling fear, the state doesn’t want to move forward because it doesn’t be acquainted with what’s there. To demystify cryptocurrency, we need a community-driven agenda. We poverty to strategically demystify the misconceptions around cryptocurrency and get it integrated into the sway digitization agenda.” Mr. Boasiako suggested the establishment of a “working group on cryptocurrency that has colleagues from stakeholders like the Bank of Ghana,” recommending that such a trunk should closely monitor developments in the sphere of cryptocurrency regulation in other rules.
Algeria Expected to Ban All Cryptocurrencies
Last month, it was reported that Algeria’s congress had begun to examine new financial legislation that would see all cryptocurrencies banned throughout the motherland. The ‘2018 Finance Bill’ states that “The purchase, sale, use, and authority of the so-called virtual currency is prohibited. The virtual currency is the one used by Internet operators through the web. It is characterized by the absence of physical support such as coins, banknotes, payments by check out or bank cards,” specifying that “Any violation of this provision is punished in accordance with the laws and balances in force.”
An accompanying memorandum emphasizes the concerns that bitcoin’s embryonic anonymity sparks among Algerian lawmakers, stating “Algeria hopes to demonstrate a stricter control over this kind of digital transaction, which can be employed for drug trafficking, tax evasion, and money laundering thanks to the guaranteed anonymity of its owners.” The document asserts that despite cryptocurrencies having “long been the privilege of illegal transaction,” they are able to “get rid of their bad reputation in democratizing and captivating a wider audience.”
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