Patrick Njoroge, the governor of Kenya’s central bank, has acknowledged getting pressure from cryptocurrency advocates to convert the country’s reserves into Bitcoin (BTC).
During a September 19 meeting with members of parliament, Njoroge referred to the proposal as “crazy,” stressing that changing the reserves into Bitcoin would be risky given the digital currency’s volatility.
In addition, he implied that legislators may be under pressure to influence the legislative process in Favour of cryptocurrency adoption. Intriguingly, the governor said that he was willing to go to jail if the nation adopted Bitcoin during his reign.
Adoption potential for cryptocurrencies
In addition, Njoroge said that the nation will only accept cryptocurrencies if they answer a specific need. He asked for a study of the cryptocurrency industry to remove the “hype” around digital assets.
“What economic issue are they resolving? The answer is no, they are not superior vehicles for, say, payments or transactions. Are they superior in relation to the issues? No, its security does not surpass that of your bank account.”
Notably, the Central Bank of Kenya has already issued cautions to its people about the hazards associated with cryptocurrency transactions. However, no comprehensive rules exist to govern the industry.
In this instance, the organization has mostly sent circulars to local banks asking them to exercise prudence when engaging with cryptocurrencies or enterprises dealing in digital assets.
A recent study showing that a record four million Kenyan crypto investors experienced losses as a result of the current digital assets market sell-off emphasized the severity of the dangers.
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