[kictanet] Public Notice by CBK on Virtual Currencies

Tue Dec 15 13:48:25 EAT 2015

Gideon,

Imagine if we had waited to see Mpesa become a reality elsewhere before we
could get started.

Imagine if the Swiss had waited for regulation 300 years ago before they
started allowing anyone to open a numbered account (against the then
accepted business practice) which had no link to owner, would they have
been a banking giant today?

There was a time GoK was running around clamping down on anyone using the
Internet to make International calls; reason? It couldn't regulate it.

There was a time you had to send registered documents on a postal address.
I just saw about a month a go, Posta is starting registered emails.

I can bet that 10 years from now, there will those who will be saying there
was a time that you had to pay for everything in traditional currencies
when Bitcoin maybe is 60% of all the transactions.

If you look at the history of technology, innovation always gets ahead of
regulation.

We kickstarted mobile money payments on a large scale and I think we ought
to think this BitCoin through and see what we could benefit from it. Maybe
the future MasterCards & Visa's in Bitcoin would come from .KE.

Maybe the next 'Swiss' in Banking would be in .KE.

The horse has already left the stable and all we are trying to do is close
the stable.

Let's look for the horse and tame it.

Rgds

On Tue, Dec 15, 2015 at 1:21 PM, Gideon via kictanet <
kictanet at lists.kictanet.or.ke> wrote:

>
> 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:
>> >
>> > Send kictanet mailing list submissions to
>> >       kictanet at lists.kictanet.or.ke
>> >
>> > To subscribe or unsubscribe via the World Wide Web, visit
>> >       https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>> > or, via email, send a message with subject or body 'help' to
>> >       kictanet-request at lists.kictanet.or.ke
>> >
>> > You can reach the person managing the list at
>> >       kictanet-owner at lists.kictanet.or.ke
>> >
>> > When replying, please edit your Subject line so it is more specific
>> > than "Re: Contents of kictanet digest..."
>> >
>> >
>> > Today's Topics:
>> >
>> >   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
>> >>
>> >> _______________________________________________
>> >> kictanet mailing list
>> >> kictanet at lists.kictanet.or.ke <mailto:kictanet at lists.kictanet.or.ke>
>> >> https://lists.kictanet.or.ke/mailman/listinfo/kictanet <
>> https://lists.kictanet.or.ke/mailman/listinfo/kictanet>
>> >>
>> >> Unsubscribe or change your options at
>> https://lists.kictanet.or.ke/mailman/options/kictanet/ngigi%40at.co.ke <
>> https://lists.kictanet.or.ke/mailman/options/kictanet/ngigi%40at.co.ke>
>> >>
>> >> 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.
>> >>
>> >>
>> >>
>> >> --
>> >> 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/>
>> >> _______________________________________________
>> >> kictanet mailing list
>> >> kictanet at lists.kictanet.or.ke
>> >> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>> >>
>> >> Unsubscribe or change your options at
>> https://lists.kictanet.or.ke/mailman/options/kictanet/info%40alyhussein.com
>> >>
>> >> 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.
>> >
>> > -------------- next part --------------
>> > An HTML attachment was scrubbed...
>> > URL: <
>> https://lists.kictanet.or.ke/pipermail/kictanet/attachments/20151215/dddf9c97/attachment-0001.html
>> >
>> >
>> > ------------------------------
>> >
>> > Subject: Digest Footer
>> >
>> > _______________________________________________
>> > kictanet mailing list
>> > kictanet at lists.kictanet.or.ke
>> > https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>> >
>> >
>> > ------------------------------
>> >
>> > End of kictanet Digest, Vol 103, Issue 87
>> > *****************************************
>>
>>
>> Regards,
>> Nanjira Sambuli
>> Research Manager
>>
>>
>>
>>
>>
>> iHub <http://www.ihub.co.ke/> | Research <http://www.ihub.co.ke/research>
>> | UXLab <http://www.ihub.co.ke/uxlab> | Consulting <
>> http://www.ihub.co.ke/consulting>
>> Mobile: +254722481566
>> Skype: nanjirasambuli | Twitter: @NiNanjira
>>
>>
>>
>>
>>
>>
>> -------------- next part --------------
>> An HTML attachment was scrubbed...
>> URL: <
>> https://lists.kictanet.or.ke/pipermail/kictanet/attachments/20151215/872ce23e/attachment.html
>> >
>> -------------- next part --------------
>> A non-text attachment was scrubbed...
>> Name: signature_line.gif
>> Type: image/gif
>> Size: 947 bytes
>> Desc: not available
>> URL: <
>> https://lists.kictanet.or.ke/pipermail/kictanet/attachments/20151215/872ce23e/attachment.gif
>> >
>> -------------- next part --------------
>> A non-text attachment was scrubbed...
>> Name: signature_logo.png
>> Type: image/png
>> Size: 361 bytes
>> Desc: not available
>> URL: <
>> https://lists.kictanet.or.ke/pipermail/kictanet/attachments/20151215/872ce23e/attachment.png
>> >
>>
>> ------------------------------
>>
>> Subject: Digest Footer
>>
>> _______________________________________________
>> kictanet mailing list
>> kictanet at lists.kictanet.or.ke
>> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>>
>>
>> ------------------------------
>>
>> End of kictanet Digest, Vol 103, Issue 88
>> *****************************************
>>
>
>
> _______________________________________________
> kictanet mailing list
> kictanet at lists.kictanet.or.ke
> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>
> Unsubscribe or change your options at
> https://lists.kictanet.or.ke/mailman/options/kictanet/ngigi%40at.co.ke
>
> 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.
>

-- 
*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
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <https://lists.kictanet.or.ke/pipermail/kictanet/attachments/20151215/c4fd3ab1/attachment.htm>