In a recent interaction, Patrick Njoroge, Kenyan central bank governor who is nearing the end of his tenure at the bank, has come forward to share his perspective on cryptocurrencies. Notably, his statements come at a time when nations and entities across the globe are struggling with the topics like regulation, threats, underlying technology, etc.
Njoroge, the ninth governor of Kenya’s Central Bank, expressed that his opposition to cryptocurrencies is not driven by personal bias. Instead, it hails from an extensive database of information that the bank has accrued over its 57-year existence. Notably, the central bank’s role in defining Kenya’s policies regarding cryptocurrencies is significant, and the governor’s remarks intended to highlight the same.
With the end of his tenure approaching, Njoroge was asked about any advice he might pass on to his successor, particularly in relation to cryptocurrencies. To which, he explained the importance of a smooth transition of knowledge to his successor, hinting at the central role the bank plays in this process.
Addressing rumors of having a bias against cryptocurrencies, the central bank governor clarified that his stand, as well as the bank’s policy, are not the outcomes of individual opinions. They emerge from the collective thoughts and data that are collected by the central bank. He explained:
Personal opinions have no role to play in understanding the implications of these new-age currencies. The Central Bank is a reservoir of knowledge, and this is where the guidance comes from.”
As rumors circulate about Kenya’s government considering taxes on crypto transactions, Njoroge reaffirmed the Central Bank’s stance. His staunch criticism against engaging with volatile assets such as Bitcoin has made him a notable voice in Kenya’s financial sphere. He mentioned that the bank would persist in underscoring the risks associated with unregulated crypto activity, aligning with its duty of safeguarding Kenya’s financial landscape.
In any case, as his term ends, Governor Njoroge has clarified the Central Bank’s stand on cryptocurrencies, emphasizing the importance of its institutional knowledge over individual biases. Notably, the recent stance of the central bank was also in clear contradiction to that of Njoroge.
As reported by Todayq news, in its “Bank Supervision Annual Report 2022,” published by the Central Bank of Kenya (CBK), the bank discussed digital shilling, digital currency adoption, mobile money, and more. The bank stated that the nation doesn’t need a CBDC in the short-medium term and rather recommended a survey on the adoption of digital currencies in the country.
At large, African nations have eagerly looked forward to cryptocurrencies in recent times amid increasing inflation and currency devaluation. In fact, the Central African Republic also announced Bitcoin as a legal tender and is launching its crypto coin. Interestingly, the International Monetary Fund (IMF), which primarily warned against crypto adoption has predicted positive GDP growth for the Central African Republic.