Reserve Bank of Malawi (RBM): “Crypto Assets Cannot be Used as Legal Tender”, No MWK Replacement

  • A number of independent studies published recently have shown that there has been a growing interest from the Malawian population in regards to cryptocurrencies (such as Bitcoin, Ethereum) and its associated offerings.
  • As per a spokesperson for the RBM, the African nation is currently in the process of assessing the potential of blockchain and other crypto-related technologies.

According to an all-new article published in the Nyasa Times — one of Malawi’s most trusted media outlets — the nation’s central banking authority has recently issued a circular explicitly stating that crypto-assets could be used as “legal tender” by the masses within the country’s borders.

To be a bit more specific, a spokesperson for the RBM (Reserve Bank of Malawi) recently spoke with the local press claiming that altcoins could not be used in place of the Malawi kwacha (MWK) — the nation’s local fiat currency — for facilitating everyday monetary purchases and transactions.

Lastly, RBM Governor Dalitso Kabambe also stated in no uncertain terms a couple of days back that the Malawian government had not intentions of “recognizing/legitimizing” crypto investments anytime in the near future.

Other Key Facts Worth Pointing Out

  • As per the aforementioned circular, the Malawian government has advised its citizens to refrain from crypto trading activities since they face the risk of incurring massive losses by partaking in such ventures— primarily due to the volatile nature of digital currencies.
  • Kabambe also made it extremely clear that the Malawian government did not currently have a ‘crypto regulatory body/unit’ that could help investors in case they fell victim to an altcoin scam or ponzi scheme.
  • Lastly, according to the RBM governor, indulging in crypto activities could result in investors accidentally being exposed to risks such as money laundering, hacking incidents, etc.
  • Malawi currently does not have a single “registered crypto exchange” operating within its borders.

Final Take

In closing out this piece, it should be mentioned that since the start of the year, the Malawian government, as well as the RBM, have been tracking developments taking place in regards to crypto-enabled technologies all over the world.

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