[kictanet] Public Notice by CBK on Virtual Currencies

Wed Dec 16 09:01:43 EAT 2015

CBK Policy should have been....

"Bitcoins is a currency that is not backed by any Central Bank and as such Central Bank cannot regulate it use..."

That leaves room for others to seek to understand it and maybe come up with some good regulations as time goes by.

The way they put it *criminalises* everyone using Bitcoin.

Waithaka Ngigi

Alliance Technologies
www.at.co.ke 
  Original Message  
From: Barrack Otieno via kictanet
Sent: Wednesday, December 16, 2015 8:43 AM
To: Ngigi Waithaka
Reply To: KICTAnet ICT Policy Discussions
Cc: Barrack Otieno; Watila Alex
Subject: Re: [kictanet] Public Notice by CBK on Virtual Currencies

The question we should ask:

1) If you were the Governor CBK or CS Finance? How would you handle
Bitcoins? (with limited knowledge on technology matters?) - - i would
appreciate some response to see the practicality of the decision that
was made since there might be limited understanding on this phenomena
:-). The answer should clearly define what bitcoin is, the pros and
cons of embracing it..any takers, Ali, Ngigi, Kivuva?<div
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On Wed, Dec 16, 2015 at 7:08 AM, Watila Alex via kictanet
<kictanet at lists.kictanet.or.ke> wrote:
> many governments have taken policy decisions to opose bitcoins not for being
> virtual curreny but due to the lack of tracability.
>
> cbk is just following suit.
>
> other currency that are virtual but traceable by governments have largely
> been left alone
>
> Sent from Yahoo Mail on Android
>
> On Tue, 15 Dec, 2015 at 8:49, Ali Hussein via kictanet
> <kictanet at lists.kictanet.or.ke> wrote:
> Waithaka
>
> I concur with you. 150%
>
> Regulators the world over need to get on with the Program. Virtual
> Currencies are here to stay. Instead of fighting them and driving them
> underground find a way to work with the new dispensation.
>
> This is a fight the CBK will NEVER win. That you can take to the Bank. (Pun
> intended).
>
> Thanks & Regards
>
> Ali Hussein
> ali at hussein.me.ke
>
> +254 713 601113
> Twitter: @AliHKassim
> Skype: Abu-Jomo
> LinkedIn: http//ke.linkedin.com/in/alihkassim
> Blog: www.alyhussein.com
>
> On Dec 15, 2015, at 11:07 AM, Ngigi Waithaka via kictanet
> <kictanet at lists.kictanet.or.ke> wrote:
>
> Very dicey...
>
> Let's see... What is MPesa? It's a Virtual Currency that has a 1:1 Mapping
> with the Kenya Shilling. That's why when I send you MPesa, you don't receive
> a legal tender, but you know you can convert it to KES at a rate of 1:1
> minus the small charges.
>
> What is Paypal? a Virtual Currency that has a 1:1 mapping with say USD
>
> What is BitCoin? A Virtual Currency that has a *fluctuating* mapping with
> other currencies e.g 1:130 with USD.
>
> If I take the risk that BitCoin might fluctuate, a risk we also take when we
> get paid in USD / Euros etc when in Kenya, why should it be illegal?
>
> Its just a Virtual Currency, one of many....
>
> Regards
>
> On Tue, Dec 15, 2015 at 10:00 AM, Josiah Mugambi via kictanet
> <kictanet at lists.kictanet.or.ke> wrote:
>>
>> CBK has taken a stand:
>>
>>
>> https://www.centralbank.go.ke/index.php/news/464-public-on-virtual-currencies-such-as-bitcoin
>>
>> Extract:
>>
>> ++++
>>
>> The attention of the Central Bank of Kenya (CBK) has been drawn to media
>> reports
>> on the use, holding and trading of virtual currencies such as Bitcoin in
>> Kenya.
>> Bitcoin is a form of un-regulated digital currency that is not issued or
>> guaranteed by
>> any government or central bank. Domestic and international money transfer
>> services in Kenya are regulated by the Central Bank of Kenya Act and other
>> legislation. In this regard, no entity is currently licensed to offer
>> money remittance
>> services and products in Kenya using virtual currency such as Bitcoin.
>>
>> This is to inform the public that virtual currencies such as Bitcoin are
>> not legal
>> tender in Kenya and therefore no protection exists in the event that the
>> platform that
>> exchanges or holds the virtual currency fails or goes out of business.
>> Some of the
>> risks associated with buying, holding or trading virtual currencies
>> include the
>> following:
>>  Transactions in virtual currencies such as bitcoin are largely
>> untraceable and
>> anonymous making them susceptible to abuse by criminals in money
>> laundering
>> and financing of terrorism.
>>  Virtual currencies are traded in exchange platforms that tend to be
>> unregulated
>> all over the world. Consumers may therefore lose their money without
>> having
>> any legal redress in the event these exchanges collapse or close business.
>>  There is no underlying or backing of assets and the value of virtual
>> currencies is
>> speculative in nature. This may result in high volatility in value of
>> virtual
>> currencies thus exposing users to potential losses.
>>
>> CBK reiterates that Bitcoin and similar products are not legal tender nor
>> are they
>> regulated in Kenya. The public should therefore desist from transacting in
>> Bitcoin
>> and similar products.
>> ++++
>>
>>
>> --
>> Josiah Mugambi
>>
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>
>
>
>
> --
> Regards,
>
> Waithaka Ngigi
> Chief Executive Officer | Alliance Technologies | MCK Nairobi Synod Building
> T +254 20 525 0750 |Office Mobile: +254 716 201061 | M +254 737 811 000
> www.at.co.ke
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>
> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for
> people and institutions interested and involved in ICT policy and
> regulation. The network aims to act as a catalyst for reform in the ICT
> sector in support of the national aim of ICT enabled growth and development.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> online that you follow in real life: respect people's times and bandwidth,
> share knowledge, don't flame or abuse or personalize, respect privacy, do
> not spam, do not market your wares or qualifications.
>
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> _______________________________________________
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>
> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for
> people and institutions interested and involved in ICT policy and
> regulation. The network aims to act as a catalyst for reform in the ICT
> sector in support of the national aim of ICT enabled growth and development.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> online that you follow in real life: respect people's times and bandwidth,
> share knowledge, don't flame or abuse or personalize, respect privacy, do
> not spam, do not market your wares or qualifications.
>
>
> _______________________________________________
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>
> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for
> people and institutions interested and involved in ICT policy and
> regulation. The network aims to act as a catalyst for reform in the ICT
> sector in support of the national aim of ICT enabled growth and development.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> online that you follow in real life: respect people's times and bandwidth,
> share knowledge, don't flame or abuse or personalize, respect privacy, do
> not spam, do not market your wares or qualifications.

-- 
Barrack O. Otieno
+254721325277
+254-20-2498789
Skype: barrack.otieno
http://www.otienobarrack.me.ke/

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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.

KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.