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The Central Bank of Kenya, or CBK, has reportedly initiated discussions with international central banks to explore the possibility of entering the central bank’s digital currency space.
CBK Governor Dr Patrick Njoroge told reporters during Georgetown’s DC Fintech Week that:
“”We [the CBK] they are already discussing with other global players, in various ways, the introduction of central bank digital currencies. The push comes as a result of the proliferation of private cryptocurrencies and we already feel excluded and need to create our own space. “
From Dr Njoroge’s point of view, the central bank must keep an eye on the “niche” for which private sector cryptocurrencies compete. The CBK governor has identified money laundering and the financing of illegal activities as a central concern for the institution. However, he seemed less convinced that the global trend is towards a truly cashless society, characterizing developments as simply tending towards a “less cash” environment.
Dr Njoroge’s explicit reference to ongoing global research into how a CBDC could, in principle, be made available to the general public seemed to position central bank-sent digital currency in explicit competition with decentralized currencies.
The CBK governor also expressed a rather contemptuous view of Bitcoin (BTC), characterizing it as a mere tool of speculation. While he finds the technology behind the coin impressive, he argued that it was still an invention in search of a problem to solve.
With cryptocurrency trading on the rise across the African continent, local industry entrepreneurs are gearing up – with cautious optimism – for the likely launch of firmer regulation. Bitpesa, the Stephany Zoo-based exchange in Kenya, told Cointelegraph in September 2020 that while there is a risk of heavy intervention stifling intervention, better integration with traditional financial infrastructure could equally be a push for crypto space.
