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Bank of Uganda warns against use of Cryptocurrencies


The Bank of Uganda has issued a stern warning against the use of cryptocurrencies in the East African country.

In a statement issued by acting director Andrew Kawere, the finance industry regulator said it had not issued any licenses to payment providers, banks, fintech or any other financial institution to sell or facilitate trade or transactions using cryptocurrency.

“Bank of Uganda has noted press reports and adverts advising the public that they can convert cryptocurrencies into mobile money and vice versa. We are also aware that such conversion cannot happen without the participation of the Payment Service Providers and or Payment System operators,” The statement said.

The statement further said that entities found trading or facilitating cryptocurrency transactions would face sanctions, including revoking their licenses.

Cryptocurrencies have seen global adoption and increased use. In Africa, payment through cryptocurrency has attracted both acceptance and disregard. Last week, the Central African Republic officially adopted Bitcoin as part of its legal tender, becoming the second nation to do so after Es Salvador.

Many countries are still studying the trend before putting in place the guiding policies for the use of cryptocurrency.

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Simon W Nderitu

Simon is a tech enthusiast who keeps a close eye on emerging technologies, startups and the general business environment. You will often catch him totally immersed and drooling over Artificial Intelligence, Machine Learning, Virtual Reality, Augmented Reality, IoT and just about any other tech that promises to revolutionize the way we live. Send tips to snderitu@techtrendske.co.ke

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