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Kenya is under pressure to convert its reserves to Bitcoin

Kenya is under pressure to convert its reserves to Bitcoin
1663851132 22 Sep / 12:52

Kenya’s central bank governor Patrick Njoroge has admitted that he has been under external pressure from cryptocurrency supporters to convert the country’s reserves into Bitcoin (BTC).

According to Njoroge, the idea could be called “madness,” noting that converting the reserves to Bitcoin would be a risk given the digital asset volatility during a meeting with members of parliament on September 19.

He also hinted that lawmakers might be under pressure to influence the legislative process in favor of cryptocurrency adoption. The governor stated that if the country goes down the path of BTC during his tenure, he is ready to go to jail for it.

Njoroge explained:

I know you’re under a lot of pressure from some of these people pushing these things [cryptocurrencies] because it’s good for them. I can assure you that many people pressured me to put our reserves in Bitcoin. […] I am not with all my people if that happens.

Ability to accept cryptocurrencies

Njoroge further noted that the country could only choose to adopt cryptocurrencies if a specific issue is resolved. He called for an overhaul of the crypto sector to move away from what he described as “hype” surrounding digital assets.

He added:

In our economy, what problem do they solve? Are they better means of transactions, and the answer is no? Are they better at any issues? Are they more secure than your bank account, and the answer is no. We see them as something that maybe gets hyped, but we have to look at it carefully and see if it’s going to solve a problem or not.

There are no laws to govern the crypto sector

Notably, the Central Bank of Kenya has warned citizens about dealing with cryptocurrencies, citing the risks involved. However, there are no comprehensive regulations governing the sector.

In this case, the institution mainly issues circular letters to local banks urging them to be careful when working with cryptocurrencies or transacting with firms trading digital assets.

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