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Kenya’s Central Bank Warns Against Cryptocurrency


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As the regulatory debate continues mainly between government agencies and cryptocurrency protagonists, the Central Bank of Kenya (CBK), through its Governor, Patrick Njoroge joins in the campaign towards slowing down the propagation of Bitcoin and cryptocurrencies.

A Recurrent Warning

Njoroge told legislators on Thursday that he had sent a circular to all banks warning them on the dangers of dealing in virtual currencies. According to him while addressing the National Assembly Committee on Finance at Parliament Buildings, the circular cautioned the banks against dealing in virtual currencies or transacting with entities that are engaged in virtual currencies.

This is not the first time that the CBK is getting involved in moves to discourage the country’s citizens from getting involved in what has been popularly described as a risky venture by most regulators. It can be recalled that in December 2015, the consumer protection concerns led CBK to issue a notice warning the public against virtual currencies such as Bitcoin.

These warnings are not peculiar to the CBK alone or to Kenya. In a previous article on CCN, it was reported how the Manager at Nigeria Deposit Insurance Corporation (NDIC) warned citizens of the lack of insurance on any investment in virtual currencies, qualifying them as very risky ventures that are not backed by any physical commodity, such as gold or other precious stones.

In the same trend, just last Wednesday, World Bank Group Senior Vice President Mahmoud Mohieldin said that Blockchain technology may have many good uses in the world, but Bitcoin “could be the biggest bubble in history.” This statement reinforces the recurring question that seeks to address if blockchain technology can be isolated from cryptocurrencies, and how possible it is to adopt the technology without implementing its underlying tokens – cryptocurrencies.

Yes to the Blockchain, no to Cryptocurrency

If one would study the tone of these spokespersons in their criticisms so far, it is easy to deduce that while they may have warned against the adoption of these tokens as elements of value, hence investment vehicles or currencies for transaction, none has outrightly noted on the possibility of token extinction. Therefore, adopting the technology and denying the value of their underlying tokens introduces an entirely different dynamics to the debate.

Imagine the possibility of accessing and implementing specific blockchains and acquiring their underlying tokens at absolutely no costs. This will automatically redefine the total industrial dynamics of the ecosystem. The questions that would arise in such cases would be the basis of token supply and distribution, and the possibility of maintaining order within such an industry, without a marketplace.

Finding Equilibrium

Considering the current stage in the development of blockchain technology, the existing debates and resistances can be considered as normal and beneficial challenges. So far, there have been improved protocols that reflect more balanced implementations, compared to the very early blockchains. These can be credited to research and development exercises, born out of criticisms such as seen from regulatory agencies.

While the industry continues to grow and traditional systems try to find the most appropriate ways to get involved, the role of cryptocurrencies need to be properly defined. Rather than the initial hype by most enthusiasts of the new technology, or the blanket condemnation by traditional agencies, more objective steps are necessary. This will ensure a better defined ecosystem where maximum value can be achieved from a technology that is quickly finding universal approval.

Featured image from Shutterstock.

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A lot of confusing action is taking place where the Bitcoin Cash price is concerned. Although its actual decline in value is quite obvious for everyone to see, the real price of BCH is not necessarily what people can see on Coinmarketcap. This is primarily because numerous exchanges treat BCHABC as Bitcoin Cash already despite nothing being decided in terms of which chain will be the longest. Bitcoin Cash Value Fluctuates Heavily Depending on where traders look at, the price of Bitcoin Cash will be either close to the $400 level or down to $250-ish. That is quite a large gap between prices, yet one that is also very easy to explain. Bitcoin Cash, as people knew it before the fork, no longer exists. Most professional exchanges have also retired this price ticker, for the time being. As the hash war rages on, there are still a lot of unknown factors waiting to be addressed. Despite this ongoing kerfuffle, there is a net 5.76% decrease in the Bitcoin Cash price, and a 5.4% decline over Bitcoin. More specifically, that is what CoinMarketCap reports at this time, although this is not necessarily the case whatsoever. In fact, some exchanges are clearly jumping the gun by labeling BCHABC as BCH and thus dragging the Bitcoin Cash price down a bit more. Exchanges currently engaging in this activity include Bittrex and Coinex, neither of which plays a big role of importance when it comes to trading. However, based on the current value of BCH on Bitfinex and Gate.io, it seems a similar incident is taking place. One also has to keep in mind Bitcoin Cash was getting battered ahead of the network split as well. Most exchanges have halted trading of BCH indefinitely, primarily because the currency no longer exists. It is evident either BCHABC or BCHSV will take over that name in the future, but nothing has been decided at this point. As such, any trading referring to just “Bitcoin Cash” or “BCH” should be avoided, as most users can never be sure which currency is effectively being traded under this name. All of this skews the picture pertaining to Bitcoin Cash altogether. Coinmarketcap reports there is still $392m in trading volume for BCH, even though that is virtually impossible right now. With so many exchanges freezing deposits and withdrawals, it is evident actual BCH trading is no longer possible whatsoever. Virtually all platforms have deposits of BCHSV and BCHABC frozen as well, which only makes this market trend more confusing. It is safe to say the entire network split has been a bit of a mess first and foremost. In the case of Bitcoin Cash itself, that name will – under the current circumstances- not be used across exchanges for much longer. Instead, the two separate camps need to be treated as such first and foremost. Until things settle down – with might not necessarily happen anytime soon – the Bitcoin Cash price itself is pretty much irrelevant for most traders and speculators. Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency. The post Bitcoin Cash Price Gets Skewed due to Exchange Trickery appeared first on NullTX.

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