Our position on cryptocurrencies has not changed, CBK Governor says

The Central Bank of Kenya (CBK) Governor Patrick Njoroge has insisted that the bank’s position on the use of cryptocurrencies in Kenya remains unchanged.  This is according to a new report published by The Kenyan Wallstreet.

His comments come just days after a new report revealed that 16% of Kenyan adult internet users, an estimated 4.8 million people in Kenya own cryptocurrency.  The Finder’s Cryptocurrency Adoption Index report ranked Kenya 12th for cryptocurrency ownership out of 27 countries surveyed. 

CBK however insists that crypto products are not legal tender nor are they regulated in Kenya. 

“Our position has not changed on any of those products that are out there…,” Dr Patrick Njoroge said.

As we have previously reported, cryptocurrency operates as an unregulated digital currency and a number of African governments have previously issued warnings against investing in them.

The Central Bank of Kenya (CBK) last year maintained that Bitcoin is a form of unregulated digital currency that is not issued or guaranteed by any government or central bank.

According to CBK, in a circular shared last year, 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,” the CBK circular read in part.

The crypto economy in Kenya however continues to experience significant milestones mostly dominated by young people, with an average 56.1% of owners aged 18 to 34, according to Finder’s Cryptocurrency Adoption Index

In Kenya, those aged 18-34 dominate crypto ownership at 75.2%, while at 16%, 35-54 year-olds are the next most likely group to say they own crypto. Those aged 55+ come in last with 8.8%.

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