The Kenyan government has invited a consultant to re-look into the cryptocurrency regime, signaling a shift from the hardline position Central Bank of Kenya (CBK) has been holding over digital currencies in the past.
- •President William Ruto revealed that Marathon Digital Holdings has been invited to consult with National Treasury and Energy Ministry over the cryptocurrency regime.
- •Marathon Digital Holdings is one of the largest Bitcoin miners in North America. The company converts energy into economic value by processing Bitcoin transactions, creating newly minted Bitcoin (“BTC”), and keeping Bitcoin’s distributed ledger up to date.
- •With the Ministry of Energy, Ruto said Marathon Digital will discuss the energy needs in connection with cryptocurrency mining.
“Marathon Digital has been ushered to consult with Treasury on cryptocurrency regime and ministry of energy to discuss the energy needs in connection with the cryptocurrency mining,” he said at a meeting with American investors in Nairobi last week.
In 2015, CBK warned Kenyans against cryptocurrencies such as Bitcoin, stating that Bitcoin is not a not legal tender in Kenya and therefore no protection exists in the event that the platform that exchanges or holds the virtual currency fails or goes out of business.
CBK warned Kenyans that some of the risks associated with buying, holding or trading virtual currencies saying transactions are largely untraceable and anonymous, making them susceptible to abuse by criminals in money laundering and financing of terrorism.
“There is no underlying or backing of assets and the value of virtual currencies is speculative in nature. This may result in high volatility in value of virtual currencies thus exposing users to potential losses. CBK reiterates that Bitcoin and similar products are not legal tender nor are they regulated in Kenya. The public should therefore desist from transacting in Bitcoin and similar products,” said CBK in a statement.
The President was speaking during AMCHAM Business Summit in Nairobi. Also present were United States Secretary of Commerce Gina Raimondo, Kenya Investment and Trade Cabinet Secretary Rebecca Miano, US Ambassador to Kenya Met Whitman and representatives of many American and Kenyan companies, and government officials.
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