Financial stability risks as well as being conduit for illicit financing among others are the main reasons why the Central Bank of Kenya – CBK is yet to fully accept trading in virtual currencies.
According to CBK governor Dr. Patrick Njoroge, far from the commonly known bitcoins, the regulator has received over 2,000 license applications for virtual currencies but is yet to approve any of them owing to their short term viability nature.
Innovators in the virtual currencies field however reckon that they have now been able to address concerns raised by the central bank such as traceability and monitoring of digital currencies.
Despite the adoption of trading in virtual currencies by many countries, Kenya remains skeptical about digital currencies unless financial instability risks associated with the technology are addressed.
And as the country awaits recommendations from the recently unveiled Block chain and Artificial Intelligence taskforce, CBK governor notes that the regulator is collaborating with other Central Banks across the world to minimize risks associated with block chain technologies.
And with the increasing appetite in online forex trading in the country, the governor raised caution over the growing number of unscrupulous traders.
The governor was speaking during the institute of certified investments and financial analysts forum on alternative investments options.