Warning About Cryptocurrencies and Crypto Payments from the Bank of Kyrgyzstan
The Central Bank of Kyrgyzstan has warned citizens about the risks of digital assets due to the increased use of digital currencies. The financial authorities in Kyrgyzstan have also warned against using cryptocurrencies as a method of payment. The country’s central bank has recently seen an increase in the use of virtual assets, such as digital currencies. Regulators have pointed out that the Kyrgyz sem is the only fiat currency in the country and that it is still illegal to use it to buy or sell goods and services. Local media reported that foreign exchange officials warned of the dangers of decentralized digital currencies. “As a rule, no one deals with cryptocurrencies. Not funded. “Because it is not tied to another currency or asset, it has no internal value.” The National Bank of Kyrgyzstan (NBK) has explained that this creates higher risks for exchange rate fluctuations and loss of value. Also mentioned were the risks of payments in digital currencies, their features and the lack of a “central control system”.
NBK added: That is why we advise citizens to be careful and avoid using digital currency for payments and settlements. Users consider all possible risks and negative consequences when making payments using digital currencies and virtual assets.The central bank of neighboring Kazakhstan has stressed that it is too early to talk about legalization of digital currencies like bitcoin, after announcing last week that it is exploring the digital currency market. Central Asia, where both countries are located, has attracted cryptocurrency companies, especially miners, over the past year after China began attacking the industry in May 2021. Both countries have tried to curb mining by closing illegal cryptocurrencies and raising electricity tariffs. Authorized mining companies Miners blame the lack of electricity and damage to power lines.
Read more: Across light of the ongoing crypto downturn, Coinbase plans to expand in Europe.
