Uganda’s Financial Chief Warns Or Risks Tied To Decentralized Cryptocurrencies
Uganda’s Deputy Governor of the Central Bank has warned the country’s teeming population at the dangers lurking around investing in unregulated cryptocurrencies.
Unregulated Cryptocurrencies Are Risky
Reports in the English language daily New Vision on June 28 revealed that the central bank’s deputy chief is not really uncomfortable about unregulated cryptos flying around in the country.
Dr. Louis Kaskende relayed his thought during a town hall meeting held at the city of Masaka, which was specifically devoted to educating the people about the institution’s activities and role.
Although Bitcoin is generally designed as politically-neutral money, the bank chief reportedly underscored the risks of crypto trading and its adoption.
He stated that:
“Online cryptocurrency businesses are currently not regulated, and therefore carry a significant risk of loss of savings, with no recourse to protection or insurance by government, unlike the regulated financial institutions such as the commercial banks.”
Oversight of Financial Activities
The governor of the central bank in his own remark glaringly stated that the apex bank in the country does not have a comprehensive oversight of all the financial services in the country. He also maintained that the central bank’s jurisdiction is mostly commercial banks, credit institutions, remittance service providers and foreign exchange bureaus.
Blockchain technology is gradually gaining momentum in Africa, especially in East Africa, where the countries are beginning to look towards digital currency to diversify their mineral induced economy.
Uganda’s President Yoweri Museveni will be the host of the 2019 blockchain conference that is scheduled to be held in July. The aim of the conference is to prepare the East African region and the continent at large for the so-dubbed ‘’fourth industrial revolution’’ will cover areas such as payment systems, fintech and education.
Analysts are of the opinion that, although most governments in Africa might have turned a blind eye to the crypto revolution in the world, most of its citizens are openly engaging in one form of cryptocurrency transaction or the other, and it will be in the combined interest of the continent, if they can openly discuss the virtual currency and potentially look for a way forward.
Some African countries are actually answering making the desired changes and one of them is South Africa. Bitcoin Exchange Guide reported last year about the launch of the New African Union Coin in December 2018.
The virtual currency at inception will be used by telco firms in the country, without leaving out the retail outlets. Several retailers who showed a keen interest in the coin duly adjusted and organized their fiscal networks.
The firm during the launch stated that the world is gradually moving away from fiat currency, and Africa being the second largest Continent on earth should not be left behind in the new world order.
Consequently, other countries on the continent will soon embrace the coins officially, as it may be their holy grail, especially in the area of the economy, as most of the currencies on the continent are not valuable outside their shores.