According to Njoroge, the idea can be equated to ‘craziness,’ noting that converting the reserves into Bitcoin would be a risk considering the digital asset’s volatility, he said during a meeting with members of parliament on September 19. He also insinuated that lawmakers might be under pressure to influence the legislative process in favor of adopting cryptocurrencies. Interestingly, the governor pointed out that if the country went the Bitcoin way during his tenure, he was ready to go to prison for it.
Possibility of adopting cryptocurrencies
Furthermore, Njoroge noted that the country could only opt to adopt cryptocurrencies if they solve a particular problem. He called for a review of the cryptocurrency sector to move away from what he termed as ‘hype’ around digital assets.
No laws to manage crypto sector
Notably, the Central Bank of Kenya has previously issued warnings to citizens regarding dealing with cryptocurrencies citing the risks involved. However, there exist no comprehensive regulations to manage the sector. In this case, the institution has mostly issued circulars to local banks urging them to take caution when dealing with cryptocurrencies or transacting with firms dealing with digital assets. The severity of the risks was recently highlighted by a report indicating that a record four million Kenyan crypto investors suffered losses following the ongoing digital assets market sell-off. Watch full video below:
