- Kenya’s central bank seeks public opinion on digital currencies.
- The regulator is concerned about the risks involved in this venture.
With all other countries stepping into the crypto world, including Tanzania, Kenya plans to join the troop. The country’s central bank seeks public opinion to make this massive shift from Kenyan Shilling to crypto assets.
Kenya pioneered mobile payments via Safaricom’s M-Pesa in 2007 but is hesitant to leap digital currencies because of the risks involved. In addition, the central bank is concerned that introducing crypto may force commercial banks to make transactions in digital currency, avoiding the ones without access to technological framework or knowledge. As a result, monetary policies may lose their effectiveness while increasing money laundering risks, said the bank on Thursday.
However, the bank is also dwelling on the thought that digital currencies will help reduce cross-border payments costs. However, this venture can only succeed if all neighbouring countries help smoothen out “the multi-layered correspondent banking structure” and shorten the payment chains. “The balance of risks and benefits of central bank digital currency will vary from one economy to another.”, said the bank.
The government of Kenya, including the central bank and other major bodies, cannot take any independent decision without knowing the public’s views.