[kictanet] Public Notice by CBK on Virtual Currencies

Tue Dec 15 13:21:00 EAT 2015

How many countries have chartered a path for this type of currency?

May be most have adopted a wait and see stance on this one.

Also it would be good to see if any institution or business in Kenya
accepts Bitcoin as payment for goods/services.

> Message: 1
> Date: Tue, 15 Dec 2015 12:32:29 +0300
> From: Nanjira Sambuli <
> 
> nanjira at ihub.co.ke>
> To: kictanet at lists.kictanet.or.ke
> Subject: Re: [kictanet] kictanet Digest, Vol 103, Issue 87
> Message-ID: <D9B9E527-1FD7-4EB0-9C6D-55CFE4CF2B1C at ihub.co.ke>
> Content-Type: text/plain; charset="utf-8"
>
> 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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> >
> >   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
> >> <>
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> >>
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