[kictanet] kictanet Digest, Vol 103, Issue 87

Tue Dec 15 12:32:29 EAT 2015

Though CBK hasn’t said virtual currency is illegal; said it’s not legal tender, and essentially that they can’t be expected to step in. Maybe not a bad thing? 

> On 15 Dec 2015, at 12:00, kictanet-request at lists.kictanet.or.ke wrote:
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> Today's Topics:
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>   1. Re: Public Notice by CBK on Virtual Currencies (Ali Hussein)
> 
> 
> ----------------------------------------------------------------------
> 
> Message: 1
> Date: Tue, 15 Dec 2015 11:49:30 +0300
> From: Ali Hussein <ali at hussein.me.ke>
> To: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
> Subject: Re: [kictanet] Public Notice by CBK on Virtual Currencies
> Message-ID: <7B111466-78AE-4677-9A0B-B165AEFED676 at hussein.me.ke>
> Content-Type: text/plain; charset="utf-8"
> 
> 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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>> 
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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 <http://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.
>> 
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> End of kictanet Digest, Vol 103, Issue 87
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Regards,
Nanjira Sambuli
Research Manager 

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