Patrick Njoroge, Kenya’s central bank governor, confirmed external pressure from crypto fans to convert the country’s reserves into $BTC.
In the September 19 meeting with lawmakers, he described the narrative as crazy, stating that converting the asset into BTC has massive risks, citing the digital asset’s volatile nature.
Moreover, he added that legislators could be under intense pressure to alter the legislative procedure in favor of crypto adoption.
Crypto Push Pressure
Surprisingly, the governor confirmed his readiness to serve a jail term if the government adopted BTC during his management. Njoroge believes that the country might ponder crypto adoption after solving a crucial issue. He called for a Bitcoin market review to alleviate the hype surrounding cryptocurrencies.
He questioned whether digital assets would address economic matters. Meanwhile, Njoroge trusts the crypto won’t solve Kenyan issues, citing that bank account outpaces crypto in security. He added that Bitcoin could be overhyped, though crucial examination remains paramount.
Need for Crypto Regulations
Meantime, the CBK (Central Bank of Kenya) has cautioned Kenyans against using digital assets, citing the related dangers. Nevertheless, the country lacks extensive rules to monitor the industry.
In this context, the organization has mainly sent circulars to banks, calling for caution when dealing with businesses associated with cryptocurrencies.
Recent research recovered that about four million crypto investors in Kenya lost cash due to the ongoing market crash. That has attracted attention to the harshness of the related threats.
Nevertheless, Kenya is flourishing with crypto undertakings. While Nigeria dominates Paxful, Kenya comes second in Africa and 5th-largest cryptocurrency market globally.
Kenya recorded more than 200 million in P2P volumes last year and over $125M in 2022 first half. Paxful added that it projects a 25% surge in Kenyan trading volume this year.
In reaction to the significant uptick in Kenya and Ghana, Paxful commented that more African users remitted cash within the past years.
Paxful stated that its overall remittance user base soared about 140% in Kenya and more than 115% in Ghana last year. Meanwhile, Ghana noted 95% trade volume growth within a year.