Kenya in no rush to use digital currency, CBK governor

With the world’s economy becoming ever integrated central banks around the world are now beginning to toy with the idea of digital currencies.

While the Central Bank of Kenya has taken a tough stance on its use locally, the regulator is working out the pros and cons of having a digital currency that breaks the chains of international trade.

However, CBK Governor Dr Patrick Njoroge remains pessimistic about the use of Bitcoin, the most popular digital currency globally, in the country saying one size should not fit all.

“There are elements there that are in a sense workable. There are elements embedded on that proposal particularly bitcoin that are not workable and they may not be workable for the entire world on a global basis,” said Dr Njoroge

Kenya has joined central banks globally on the discussion of finding out how the use of digital currencies would impact the financial services market in different economies of the world.

Tech savvy traders have been pushing the limits of commerce as we know it, testing the theory of using a digital currency.

Being a global leader in mobile money through the inception of M-Pesa in 2007, ICT Cabinet Secretary Joe Mucheru is of the idea that Kenya should not wait long before embracing digital currency.

“We are yet to learn from our past. With regulation, we fought the internet and we fought mobile phones. We fortunately lead in digital money and we must not lose the advantage we have and become followers again,” Mr Mucheru said.

The Central Bank of Kenya has not been keen on the idea of digital currency but with the use of technology catching up with the banking sector, Kenya will have to rethink its stance.

Governor Njoroge has emphasized however that CBK will work at its own pace analyzing the merits and demerits.

“At the end of the day, it’s not whether we are first second or third that matter. What is most important is that we actually in a decisive way knowing the benefits and isolating the risks can move in a particular way. The good elements will be preserved, we just have to figure out what they are,” Dr Njoroge emphasized.

With digital currency expected to be adopted in the next five years, Dr Njoroge urged commercial banks to explore other options of financial inclusion saying there is a lot of scope and by working together, banks can achieve financial inclusion 2.0.

With the biggest challenge being vague regulation of digital currencies, monetary authorities must come together to work out cross border cooperation.