Waithaka

I concur with you. 150%

Regulators the world over need to get on with the Program. Virtual Currencies are here to stay. Instead of fighting them and driving them underground find a way to work with the new dispensation.

This is a fight the CBK will NEVER win. That you can take to the Bank. (Pun intended).

Thanks & Regards

Ali Hussein
ali@hussein.me.ke

+254 713 601113
Twitter: @AliHKassim

Skype: Abu-Jomo

LinkedIn: http//ke.linkedin.com/in/alihkassim
Blog: www.alyhussein.com

On Dec 15, 2015, at 11:07 AM, Ngigi Waithaka via kictanet <kictanet@lists.kictanet.or.ke> wrote:

Very dicey...

Let's see... What is MPesa? It's a Virtual Currency that has a 1:1 Mapping with the Kenya Shilling. That's why when I send you MPesa, you don't receive a legal tender, but you know you can convert it to KES at a rate of 1:1 minus the small charges.

What is Paypal? a Virtual Currency that has a 1:1 mapping with say USD

What is BitCoin? A Virtual Currency that has a *fluctuating* mapping with other currencies e.g 1:130 with USD.

If I take the risk that BitCoin might fluctuate, a risk we also take when we get paid in USD / Euros etc when in Kenya, why should it be illegal?

Its just a Virtual Currency, one of many....

Regards

On Tue, Dec 15, 2015 at 10:00 AM, Josiah Mugambi via kictanet <kictanet@lists.kictanet.or.ke> wrote:

CBK has taken a stand:

https://www.centralbank.go.ke/index.php/news/464-public-on-virtual-currencies-such-as-bitcoin

Extract:

++++

The attention of the Central Bank of Kenya (CBK) has been drawn to media reports

on the use, holding and trading of virtual currencies such as Bitcoin in Kenya.

Bitcoin is a form of un-regulated digital currency that is not issued or guaranteed by

any government or central bank. Domestic and international money transfer

services in Kenya are regulated by the Central Bank of Kenya Act and other

legislation. In this regard, no entity is currently licensed to offer money remittance

services and products in Kenya using virtual currency such as Bitcoin.

This is to inform the public that virtual currencies such as Bitcoin are not legal

tender in Kenya and therefore no protection exists in the event that the platform that

exchanges or holds the virtual currency fails or goes out of business. Some of the

risks associated with buying, holding or trading virtual currencies include the

following:

 Transactions in virtual currencies such as bitcoin are largely untraceable and

anonymous making them susceptible to abuse by criminals in money laundering

and financing of terrorism.

 Virtual currencies are traded in exchange platforms that tend to be unregulated

all over the world. Consumers may therefore lose their money without having

any legal redress in the event these exchanges collapse or close business.

 There is no underlying or backing of assets and the value of virtual currencies is

speculative in nature. This may result in high volatility in value of virtual

currencies thus exposing users to potential losses.

CBK reiterates that Bitcoin and similar products are not legal tender nor are they

regulated in Kenya. The public should therefore desist from transacting in Bitcoin

and similar products.

++++

--

Josiah Mugambi

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--

Regards,

Waithaka Ngigi

Chief Executive Officer | Alliance Technologies | MCK Nairobi Synod Building

T +254 20 525 0750 |Office Mobile: +254 716 201061 | M +254 737 811 000

www.at.co.ke

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