The Central Bank of Kenya is considering the launch of digital currencies in Kenya. CBK has entered into discussions with other Central Banks about the possibility of entering the digital currency space.
A cryptocurrency such as bitcoin, Ethereum, ripple, Litecoin among others is a digital asset designed to work as a medium of exchange wherein the individual coin ownership records are stored in a digital ledger in a form of a computerized database using blockchain technology.
Though there are critics of cryptocurrencies as being used as money laundering tools, the digital assets are more secure and easier to transact.
“We are already having discussions with other global players, in various ways, around the introduction of Central Bank Digital Currencies. The push comes as a result of mushrooming of private cryptocurrencies and we are already feeling left out and need to create our own space,” said Central Bank of Kenya Governor Dr. Patrick Njoroge.
Dr. Njoroge made the remarks in an online interview with US Media, on the sidelines of Georgetown’s DC Fintech week.
The launch of cryptocurrencies may pose a liquidity risk for the highly accepted MPESA in the Kenyan market.
However, the Kenyan market should be open to the digital market space to remain competitive in the global financial markets.