Kenyan Central Bank Decries Converting its Reserves to Bitcoin

Governor of the Kenyan Central Bank, Patrick Njoroge, has referred to the proposal to exchange Kenya’s reserves for Bitcoin (BTC) as “craziness”. He said that he would have to be completely insane to consent to this. 

While addressing the elected members of the Kenyan legislative chamber, the governor reiterated that Kenya’s reserves being converted to Bitcoin is a punishable offense by jail time. Njoroge claimed that cryptocurrencies such as Bitcoin are not only unstable but also never solve any problems. 

Interestingly, the Central Bank of Kenya has issued several comments and warnings under Njoroge’s leadership cautioning Kenyan citizens against dealing or engaging in cryptocurrency. 

Recall that back in June 2022, News expressed that Njoroge and the deputy governor of the Central Bank of Nigeria (CBN), Kingsley Obiora, had identified the unpredictability of cryptocurrency as one of the justifications why they could not be adopted as a common payment method across different nations in the world. 

Cryptocurrencies Don’t Solve Any Issues, says Njoroge

Njoroge continues to cast doubt on the advantages of cryptocurrencies for the Kenyan economy in a new YouTube video. He stated: “in our economy what problems are they solving? Are they better vehicles for let’s say payments, and transactions? And the answer is no. Are they better in terms of security? More than a bank account? And the answer is no.” 

Additionally, the governor stated that he is also under pressure as he tries to persuade lawmakers not to listen to people pushing bitcoin and other digital currencies in Kenya. The CBK governor reiterated that he will have to be completely out of his mind to approve the proposal to transform Kenya’s reserves to Bitcoin. 

Despite Njoroge and the CBK’s objections, multiple surveys have indicated that Kenyans have joined the increasing number of people in western African countries like Nigeria using or investing in cryptocurrency. 

Recall that the leading peer-to-peer cryptocurrency exchange company Paxful recently claimed that customers from the nation owned digital assets estimated at $125 million in the first quarter of 2022.