[kictanet] Public Notice by CBK on Virtual Currencies

Wed Dec 16 07:08:15 EAT 2015

many governments have taken policy decisions to opose bitcoins not for being virtual curreny but due to the lack of tracability.
cbk is just following suit.
other currency that are virtual but traceable by governments have largely been left alone

Sent from Yahoo Mail on Android 

  On Tue, 15 Dec, 2015 at 8:49, Ali Hussein via kictanet<kictanet at lists.kictanet.or.ke> wrote:   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: @AliHKassimSkype: Abu-JomoLinkedIn: 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> 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 reportson 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 byany government or central bank. Domestic and international money transferservices in Kenya are regulated by the Central Bank of Kenya Act and otherlegislation. In this regard, no entity is currently licensed to offer money remittanceservices and products in Kenya using virtual currency such as Bitcoin.
This is to inform the public that virtual currencies such as Bitcoin are not legaltender in Kenya and therefore no protection exists in the event that the platform thatexchanges or holds the virtual currency fails or goes out of business. Some of therisks associated with buying, holding or trading virtual currencies include thefollowing: Transactions in virtual currencies such as bitcoin are largely untraceable andanonymous making them susceptible to abuse by criminals in money launderingand financing of terrorism. Virtual currencies are traded in exchange platforms that tend to be unregulatedall over the world. Consumers may therefore lose their money without havingany 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 isspeculative in nature. This may result in high volatility in value of virtualcurrencies thus exposing users to potential losses.
CBK reiterates that Bitcoin and similar products are not legal tender nor are theyregulated in Kenya. The public should therefore desist from transacting in Bitcoinand similar products.++++

-- 
Josiah Mugambi
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Regards,
Waithaka NgigiChief Executive Officer | Alliance Technologies | MCK Nairobi Synod BuildingT +254 20 525 0750 |Office Mobile: +254 716 201061 | M +254 737 811 000
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