Central bank must see cryptocurrency rules


Central bank must see cryptocurrency rules

Kenya has the largest share of its population with cryptocurrencies in Africa, says the United Nations. PHOTO PHOTO | NMG

A time has come when Kenya must regulate digital currency. The country has the highest proportion of crypto-owning citizens in Africa and we are at risk of falling behind in the race for the future of money. A report by the United Nations Conference on Trade and Development says that 8.5 percent of the population or 4.25 million people own cryptocurrencies.

Globally, central banks are in the race towards the first major rules on digital or virtual currency. About 105 countries are now exploring the Central Bank Digital Currency Tracker. The bottom line is that the race to the future of money is well underway but it is not too late for Kenya to catch up. The Central Bank of Kenya (CBK) can harness new technology to deliver safer and faster payments.

Already, young Kenyans are buying cryptocurrencies to preserve their savings, and to transact across borders as import payments through cryptocurrency are seen as convenient and quick. These entrepreneurs and investors face fraud and other risks if left uncontrolled or without the help of the CBK.

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