Uganda’s central bank is considering whether to withdraw digital currency and has not yet banned cryptocurrencies, but is concerned about risks from technologies that include consumer protection and investment, the bank’s chief executive said on Friday. The Bank of Uganda is currently conducting a preliminary study of the digital currency of the central bank and in particular examines its policy objectives, “Andrew Kawere, the bank’s national director of payments.
Africa’s first to adopt Bitcoin
“Is the investment we want to resolve, the payments, the new support in the financial sector? That is an unanswered question. African governments have looked at digital currencies differently. Central Bank of Nigeria banned local banks from operating cryptocurrencies last year before launching its digital currency, while Central African Republic last month adopted bitcoin as the official currency, Africa’s first.
Kawere said they did not have time to complete their studies or withdraw digital money, but said they were more focused on the risks surrounding technology. “Consumer protection – this is a big problem for us as a Bank of Uganda. in one of these highly developed investments. He also said the acquisition would be a problem if the money was released because of low levels of access to required infrastructure such as smart phones, computers and the internet.
$ 4.8 billion cryptocurrency exchange
He said the bank was skeptical about the volatility of cryptocurrencies, which he said reduced their ability to function as a value store. Cryptocurrencies are already being used casually in Uganda, Kawere said, but the central bank had warned licensed payment services providers to slow down. them while the administrator learns technology and develops control methods.Ugandans have received a $ 4.8 billion cryptocurrency exchange between March 2019 and March 2022, according to blockchain data platform Chainalysis”said Kawere.
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