Report: Kenyan and Nigerian Central Bankers Attack Cryptocurrencies But Support CBDC – Emerging Markets Bitcoin News

Nigerian and Kenyan central bankers have reportedly said that cryptocurrencies are too volatile to become a widely used method of payment. Furthermore, bankers claim that cryptocurrencies also pose a risk to financial stability.

bridging the financial exclusion gap

Nigerian and Kenyan central bankers have said that cryptocurrencies are too unstable to become an acceptable payment method. A Reuters report said that bankers also emphasized that cryptocurrencies pose a risk to financial stability.

According to the report, bankers named Kingsley Obiora, deputy governor of the Central Bank of Nigeria (CBN) and Patrick Njoroge, governor of the Kenyan Central Bank, believe that a central bank digital currency is a better way of bridging the financial exclusion gap. have a chance. , Central bankers said that only central bank digital currency[CBDC]Can reduce transaction costs.

In the report, Obiora, who spoke at an International Monetary Fund (IMF)-run virtual summit, is quoted as explaining why his institution is opposed to cryptocurrencies. he said:

The volatility it creates can become a source of instability in the system.

Read also: Legitimacy of the CBN government to vie for political office

Kenya to issue CBDC

For his part, Njoroge is quoted in the report as saying what he believes is propaganda that is associated with cryptocurrencies. The governor of the Kenyan central bank nonetheless indicated that his institution may eventually regulate crypto assets as a “money product”. In addition to regulating privately issued digital currencies as money products, Njoroge suggested that the Central Bank of Kenya (CBK) may eventually follow in Nigeria’s footsteps and issue its own CBDC.

However, unlike CBN, which is attempting to increase the number of people involved financially through its recently launched CBDC, CBK will not prioritize this as it is achieved with mobile money, Njorog explained.

As previously reported by Bitcoin.com News, the Kenyan central bank solicited the public’s views and perceptions on CBDCs. According to a Reuters report, CBK is now in the process of investigating the public’s reaction.

Tags in this story CBDC, central bank of Kenya, central bank of Nigeria, crypto assets, cryptocurrency, cryptocurrency regulation, cryptocurrency volatility, financial exclusion, financial volatility, imf, Kingsley Obiora, Patrick Njoroge, payment method

What are your thoughts on this tomorrow? Tell us what you think in the comment section below.

Terence Zimwara

Terence Zimwara is a Zimbabwean award-winning journalist, author and author. He has written extensively about the economic problems of some African countries, how digital currencies can provide Africans with an escape route.

image credit: Shutterstock, Pixabay, WikiCommons

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