{"id":12692,"date":"2022-06-13T10:18:40","date_gmt":"2022-06-13T10:18:40","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/kenyan-and-nigerian-central-bankers-attack-cryptocurrencies-but-endorse-cbdcs-emerging-markets-bitcoin-news\/"},"modified":"2022-06-13T10:18:40","modified_gmt":"2022-06-13T10:18:40","slug":"kenyan-and-nigerian-central-bankers-attack-cryptocurrencies-but-endorse-cbdcs-emerging-markets-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/kenyan-and-nigerian-central-bankers-attack-cryptocurrencies-but-endorse-cbdcs-emerging-markets-bitcoin-news\/","title":{"rendered":"Kenyan and Nigerian Central Bankers Attack Cryptocurrencies but Endorse CBDCs \u2013 Emerging Markets Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Cryptocurrencies are very unstable for them to become a widely used method of payment, the Nigerian and Kenyan central bankers have reportedly said. In addition, the bankers claim that cryptocurrencies also pose a risk to financial stability. <\/strong><\/p>\n

Narrowing the Financial Exclusion Gap<\/h2>\n

The Nigerian and Kenyan central bankers have said cryptocurrencies are too volatile to become an acceptable payment method. The bankers also insisted that cryptocurrencies pose a risk to financial stability, a Reuters report has said.<\/p>\n

As per the report<\/a>, the bankers namely, Kingsley Obiora, the deputy governor of the Central Bank of Nigeria (CBN) and the Kenyan central bank governor Patrick Njoroge, believe that a central bank digital currency has a better chance of narrowing the financial exclusion gap. The central bankers added that only a central bank digital currency (CBDC) can reduce the cost of transacting.<\/p>\n

In the report, Obiora, who spoke at an International Monetary Fund (IMF) moderated virtual summit, is quoted explaining why his institution is opposed to cryptocurrency. He said:<\/p>\n

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The volatility it creates can become a source of instability in the system.<\/p>\n<\/blockquote>\n

Kenya to Issue a CBDC<\/h2>\n

For his part, Njoroge is quoted in the report questioning what he believed to be the hype that is associated with cryptocurrencies. The Kenyan central bank governor nonetheless hinted that his institution may eventually regulate crypto assets as a \u201cwealth product.\u201d Besides regulating the privately issued digital currencies as a wealth product, Njoroge suggested that the Central Bank of Kenya (CBK) may eventually follow in the footsteps of Nigeria and issue its own CBDC.<\/p>\n

However, unlike the CBN which is attempting to increase the number of people that are financially included via its recently launched<\/a> CBDC, the CBK will not be prioritizing this because that has been achieved with mobile money, Njoroge explained.<\/p>\n

As previously reported by Bitcoin.com News, the Kenyan central bank had sought the public\u2019s views and perceptions on CBDCs. According to the Reuters report, the CBK is now in the process of examining the public\u2019s feedback.<\/p>\n

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CBDC<\/a>, central bank of Kenya<\/a>, Central Bank of Nigeria<\/a>, crypto assets<\/a>, Cryptocurrency<\/a>, Cryptocurrency regulation<\/a>, cryptocurrency volatility<\/a>, financial exclusion<\/a>, Financial Instability<\/a>, IMF<\/a>, Kingsley Obiora<\/a>, Patrick Njoroge<\/a>, payment method<\/a><\/div>\n<\/div>\n

What are your thoughts on this tomorrow? Let us know what you think in the comments section below.<\/strong><\/em><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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