Just a few days ago, the Central Bank of Kenya issued a warning against the use of Bitcoin and other digital currencies. It should come as no surprise this warning had an adverse effect, as Bitcoin adoption is growing in the country. When it comes to cheap international money transfers to and from Kenya, there is no better option than using Bitcoin.
Also read: Will Kenya Be The Next Bitcoin Hub?
The Bitcoin Boom In Kenya
Even though the Central Bank of Kenya might not like Bitcoin or any other digital currency, there is very little they can do about the growing rate of its adoption in the country. Tight capital controls make it hard for Kenyans to move money to and from the country unless they use expensive remittance solutions.
To make matters even more interesting, the Central Bank of Kenya deemed Bitcoin not to be legal tender in the country, technically making it illegal to use. However, at the same time, there is no official ban on the usage of digital currencies, leaving Bitcoin in a grey zone. With no government or bank guarantee to protect Bitcoin from financial harm, consumers are well warned about the risks digital currency holds.
These warnings are not swaying the minds of Kenyan citizens, though, as they flock to Bitcoin like never before. According to statistics mentioned by Fulton News, roughly 10,000 people in Kenya are using Bitcoin right now, and that number will keep on growing for quite some time.
As far as the reasoning goes behind these numbers, Bitcoin is a far cheaper and convenient way to send and receive remittance transfers. With low costs, and transactions clearing within seconds, transferring wealth from one place to the next is a breeze. Additionally, all a user needs is a mobile device to receive Bitcoin payments, of which there are plenty in developing countries like Kenya.
Furthermore, Kenyans have easy access to Bitcoin, thanks to services like M-Pesa and BitPesa. Even though the former business is currently blocked by Kenya’s largest mobile network operator, it is only a matter of time until they will be servicing customers once again.
Blockchain Technology is Beneficial To Central Bank of Kenya
Even though the Central Bank of Kenya might not like Bitcoin all that much, the underlying blockchain technology could be of great value to them. In fact, quite a few major banks around the world have shown an interest in blockchain technology to help revitalize their infrastructure.
Not embracing this revolutionary technology would be a major mistake on the Central Bank of Kenya’s part. Faster and cheaper money transfers within the country itself are beneficial to all parties involved, and could help attract new investors from abroad. Regardless of their decision, Bitcoin and blockchain technology are not going anywhere anytime soon.
Source: Fulton News