Bitcoin is the world’s famous cryptocurrency that has since traded at a lifetime high of over $61,000 (KES 6.7 million per Bitcoin).
Sunday morning, Kenya’s Cabinet Secretary for ICT Innovation and Youth Affairs Mr. Joe Mucheru tweeted in awe of Bitcoin, the reactions were expected.
Kenya doesn’t have a policy, has not communicated that it will have one, on cryptocurrencies and blockchain technology.
In 2015, the country’s Central Bank warned Crypto enthusiasts about dealing in Cryptocurrencies particularly Bitcoin.
This is to inform the public that virtual currencies such as Bitcoin are not legal tender in Kenya and therefore no protection exists in the event that the platform that exchanges or holds the virtual currency fails or goes out of business. Some of the risks associated with buying, holding or trading virtual currencies include the following:
- Transactions in virtual currencies such as bitcoin are largely untraceable and anonymous making them susceptible to abuse by criminals in money laundering and financing of terrorism.
- Virtual currencies are traded in exchange platforms that tend to be unregulated all over the world. Consumers may therefore lose their money without having any legal redress in the event these exchanges collapse or close business.
- There is no underlying or backing of assets and the value of virtual currencies is speculative in nature. This may result in high volatility in value of virtual currencies thus exposing users to potential losses.
– Central Bank of Kenya, 2015, Click me to read the full CBK statement.
Despite the warning by CBK, Kenya is among the top traders in cryptocurrencies in Africa.
Fast-forward to 2021, Mucheru who is former Google Kenya CEO must have some holdings in the cryptocurrency as per the excitement that could be read from his tweet.
He was however attacked, rightly so.
Donate to support me
Bitcoin (seeking only 0.15 BTC to complete my studies, do self-help projects):