[kictanet] Public Notice by CBK on Virtual Currencies

[Ngigi Waithaka]

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,*

*Wait**haka 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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