[kictanet] Public Notice by CBK on Virtual Currencies

Wed Dec 16 08:41:57 EAT 2015

The question we should ask:

1) If you were the Governor CBK  or CS Finance? How would you handle
Bitcoins? (with limited knowledge on technology matters?) - - i would
appreciate some response to see the practicality of the decision that
was made since there might be limited understanding on this phenomena
:-).  The answer should clearly define what bitcoin is, the pros and
cons of embracing it..any takers, Ali, Ngigi, Kivuva?<div
id="DDB4FAA8-2DD7-40BB-A1B8-4E2AA1F9FDF2"><table style="border-top:
1px solid #aaabb6; margin-top: 10px;">
	<tr>
		<td style="width: 105px; padding-top: 15px;">
			<a href="https://www.avast.com/lp-safe-emailing?utm_medium=email&utm_source=link&utm_campaign=sig-email&utm_content=webmail"
target="_blank"><img
src="https://ipmcdn.avast.com/images/logo-avast-v1.png" style="width:
90px; height:33px;"/></a>
		</td>
		<td style="width: 470px; padding-top: 20px; color: #41424e;
font-size: 13px; font-family: Arial, Helvetica, sans-serif;
line-height: 18px;">This email has been sent from a virus-free
computer protected by Avast. <br /><a
href="https://www.avast.com/lp-safe-emailing?utm_medium=email&utm_source=link&utm_campaign=sig-email&utm_content=webmail"
target="_blank" style="color: #4453ea;">www.avast.com</a>
		</td>
	</tr>
</table><a href="#DDB4FAA8-2DD7-40BB-A1B8-4E2AA1F9FDF2" width="1"
height="1"></a></div>

On Wed, Dec 16, 2015 at 7:08 AM, Watila Alex via kictanet
<kictanet at lists.kictanet.or.ke> wrote:
> 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: @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> 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
>> 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
>> 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,
>
> 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
> _______________________________________________
> 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.
>
>
> _______________________________________________
> 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/awatila%40yahoo.co.uk
>
> 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.
>
>
> _______________________________________________
> 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/otieno.barrack%40gmail.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.

-- 
Barrack O. Otieno
+254721325277
+254-20-2498789
Skype: barrack.otieno
http://www.otienobarrack.me.ke/