Report: Central bankers in Kenya and Nigeria criticise cryptocurrencies but support CBDCs
According to reports, the central bankers of Nigeria and Kenya believe that cryptocurrencies are too unstable to be utilised as a common form of payment. The bankers also believe that cryptocurrencies endanger the stability of the financial system. Cryptocurrencies, according to the central bankers of Kenya and Nigeria, are too volatile to be used as a payment method. According to a Reuters story, the bankers insisted that cryptocurrencies pose a risk to the stability of the financial system. According to the study, the central bank’s digital currency has a higher chance of closing the financial inclusion gap, according to bankers Kingsley Obiora, the deputy governor of the Central Bank of Nigeria (CBN), and Patrick Njoroge, the governor of Kenya’s central bank.
Njoroge is noted in the article questioning what he considers to be the hoopla around cryptocurrency. However, the governor of the Kenyan central bank made a suggestion that his organisation would someday regulate cryptocurrency holdings as a “wealth product.” Njoroge proposed that in addition to regulating privately produced digital currencies as a wealth product, the Central Bank of Kenya (CBK) may someday follow Nigeria’s lead and issue its own CBDC. The CBK would not prioritise this because mobile money has already made it possible for more individuals to be financially included, in contrast to the CBN, which is attempting to do so through its recently created CBDC, Njoroge said. The Kenyan central bank, as previously reported by Bitcoin.com News, has surveyed the populace to see what they thought about CBDCs. The CBK is currently reviewing the public’s response, according to the Reuters article.