A report by a Blockchain & Artificial Intelligence task force recommended the use of cryptocurrency in Kenya noting that the global trend is inevitable.
The report was handed over to Kenya’s cabinet secretary for Information, Communications and Technology Joe Mucheru by the task force chairman, Professor Bitange Ndemo, on Thursday.
The report recommended that the Central Bank of Kenya look into the creation of a digital currency which correlates with an individual’s digital identity. The aim of this move is to create a system that is trusted and stable.
“It is indeed bold and interesting to hear your team recommend to the Central Bank of Kenya governor to not only set up a framework for digital currency but also by so doing, be the first ‘digital currency’ governor of the world,” Mucheru said.
In 2015, the CBK warned the public against transacting in virtual currencies, such as Bitcoin, as they were not legal tender in Kenya and therefore no protection existed in the event such exchange platforms failed or went out of business.
Only last week, Governor Patrick Njoroge said that the CBK was miles away from allowing the use of cryptocurrency as legal tender noting that the risks are phenomenal.
“We are still miles away from having solutions to those things. I know there’s a lot of interest particularly with the new product that Facebook has recently announced,” Njoroge said.
Facebook announced last week that it was hoping to launch a cryptocurrency called Libra in 2020.
Facebook’s announcement has been met with criticism and skepticism amid concerns about its mishandling of user data and risks to the global financial system.