Patrick Njoroge, the governor of the Kenyan central bank, believes that it is ‘craziness’ to even think about converting the reserves of the country into bitcoin.
He further added that he would only agree to something like this if he was out of his mind. According to the governor, cryptocurrencies, such as bitcoin are highly volatile and do not really solve a problem.
No bitcoin
The Governor of the Central Bank of Kenya (CBK), Patrick Njoroge was very upfront about what he thinks of the idea of converting the country’s reserves into Bitcoin.
While addressing the members of the Kenyan legislature who were recently elected, he said that it was ‘craziness’ to even consider doing so.
The governor said that if he ever agreed to this idea, then they should jail him and throw away the keys to his prison cell.
Under the stewardship of Njoroge, the CBK has issued a number of advisories and statements that warn the country’s residents against investing in, or trading cryptocurrencies.
In June 2022, Njoroge and Kingsley Obiora, the deputy governor of the CBK, stated that the volatility of cryptocurrencies was the primary reason why they were not to be used as a payment method.
Kenyan residents
But, even though the Central Bank of Kenya (CBK) has shared its stance, as has Njoroge, it does not appear that Kenyan residents have taken them seriously.
A number of studies have shown that there is an increase in the investment in, as well as the use of, cryptocurrencies in the country.
For instance, Paxful, a peer-to-peer crypto exchange recently disclosed that its users from Kenya owned digital assets of about $125 million in the first half of the year.
But, Njoroge is not a proponent and has gone as far as questioning the benefits that cryptocurrencies can offer to the Kenyan economy.
No purpose
The Kenyan central bank’s governor said that cryptocurrencies were not really solving a problem in their economy.
He asked if cryptocurrencies were a better option for transactions, or payments and said that they were not.
He also highlighted that cryptocurrencies could certainly not offer more security as opposed to a bank account.
The governor also wanted to dissuade lawmakers from listening to individuals who are hyping bitcoin as well as other cryptocurrencies.
Therefore, Njoroge also disclosed that he was under pressure as well from the people who were pro crypto.
He stated that cryptocurrencies may be good for these people and there were a lot of them who were pressurizing him to convert the reserves of the country into bitcoin.
But, Njoroge was quick to respond that he would only do this if he were out of his mind, or else he would never make this mistake.
The Central Bank of Kenya and its governor are not the only ones that are skeptical of cryptocurrencies and their value.
Other central banks, such as that of Russia as well as India, have also expressed similar sentiments and are not in favor of their use as a means of payment.
