[kictanet] Public Notice by CBK on Virtual Currencies

Tue Dec 15 11:49:30 EAT 2015

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 <mailto: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 <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
>  <>
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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.
> 
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