Kenya’s central bank governor disagrees with converting the country’s reserves to bitcoin. Patrick Njoroge used the word “madness” to qualify these calls. According to him, cryptocurrencies like Bitcoin (BTC), are very volatile and hardly solve any problem.
The Central Bank of Kenya opposes the conversion of the country’s reserves into Bitcoin
Central Bank of Kenya (CBK) Governor Patrick Njoroge appears to be furious at calls to convert the country’s reserves into Bitcoin (BTC). This is madness, he says, adding that accepting such a proposal deserves jail time. According to him, if he agrees to convert his country’s reserves into BTC, he deserves prison.
Indeed, the CBK has issued statements warning residents of Kenya against trading or investing in cryptos like Bitcoin. According to Njoroge, cryptos cannot be used as a method of payment, due to their high volatility. The Deputy Governor of the Central Bank of Nigeria (CBN), Kingsley Obiora, also agrees.
Despite this opposition from the CBK, several studies have suggested that residents of Kenya are getting more into cryptos and Bitcoin. For example, Paxful users held cryptocurrencies valued at $125 million at the start of 2022.
Njoroge: cryptos hardly solve any problem!
Patrick Njoroge is not convinced that cryptos like Bitcoin can bring benefits to Kenya’s economy. In a video uploaded to Youtube, he said that cryptos do not solve any problem.
“In our economy, what problems do they solve? Are they better vehicles for, say, payments, transactions? And the answer is no. Are they better in terms of…. security more than a bank account? And the answer is no,” added Njoroge.
Moreover, the governor claims that he was also under pressure. He is indeed receiving many proposals that suggest converting Kenya’s CBK reserves into Bitcoin. Njoroge however suggested that he should be mad before accepting such a proposal.
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