Kenya’s central bank sees the push for Bitcoin, aims to bring strict regulations

Patrick Njoroge revealed that he was under pressure from crypto fans to convert the country's reserves for Bitcoin

Patrick Njoroge, the governor of Kenya’s central bank, revealed that he was under pressure from crypto fans to convert the country’s reserves for Bitcoin (BTC).

Njoroge called the move “crazy” in a meeting with parliamentarians on September 19. He also said it would be unwise to swap the assets into Bitcoin given the volatile nature of the virtual currency.

The governor also hinted that lawmakers might be under pressure to influence legislation to support the use of cryptocurrency.

Njoroge would not let Kenya accept Bitcoin

Interestingly, he stated he would serve time in jail if the country accepted Bitcoin under his leadership. According to Njoroge, the country could decide to adopt cryptocurrencies only if they offer a solution to a particular problem. 

He questioned, “What issue in our economy are they addressing?” and urged a reassessment of the bitcoin market to avoid the “hype” surrounding digital assets.

“The answer is no, they are not superior vehicles for, say, payments or other activities. In terms of whatever the issues are, are they better? The answer is no, its security does not outweigh that of your bank account. We perceive it as sort of something that is perhaps overhyped, but we do need to properly examine it to determine whether it would solve a certain problem or not,” he stated.

Notably, due to the risks involved, the Central Bank of Kenya has already advised citizens against adopting Bitcoin and other cryptocurrencies. However, there aren’t many detailed laws for the industry, despite the UN’s recommendation of strict regulations in the nation.

In this case, the organization has mostly spoken with local banks through circulars, encouraging them to be careful when working with cryptocurrency exchanges or companies that deal in digital assets.

The gravity of the risks was shown by a recent study that revealed a record four million Kenyan crypto investors lost money as a result of the ongoing sell-off in the market for digital assets. However, this hasn’t stopped citizens from interacting with Bitcoin and other digital assets. TheCoinRise reported in October last year that Kenya was fourth in the global list of countries interested in crypto.