As the legislative debate continues, mainly between government agencies and cryptocurrency leaders, the Central Bank of Kenya (CBK), by its governor, Patrick Njoroge joins the campaign to delay the spread of Bitcoin and Cryptovalute.
Njoroge told lawmakers Thursday he had sent a circular to all banks warning them of the dangers of trading virtual currencies. According to him, while addressing the Committee of the National Finance Assembly in Parliament’s buildings, the circular cautioned banks against virtual currency transactions or transactions with entities engaged in virtual currencies.
This is not the first time that CBK has been involved in actions aimed at discouraging citizens of the country from getting involved in what most regulators have defined as a risky business. It can be recalled that in December 2015, consumer protection concerns prompted CBK to issue a warning warning the public against virtual currencies such as Bitcoin.
These warnings are not unique to CBK or Kenya alone. In a previous article on NCF, it was reported that citizens cautioned against the absence of insurance director of the Nigeria Deposit Insurance Corporation (NDIC) on any investment in virtual currencies, describing them as very risky initiatives that are not supported by any physical assets, such as gold or other gems.
In the same vein, World Bank Group Vice President Mahmoud Mohieldin said on Wednesday that Blockchain technology could have many uses in the world, but that Bitcoin “could be the biggest bubble in history” . This assertion reinforces the recurring question of whether blockchain technology can be isolated from cryptocurrencies and how much technology can be adopted without implementing its basic cryptocurrencies tokens.
Yes to Blockchain, not to Cryptocurrency
If one studied the tone of these spokespersons in their criticisms to date, it is easy to deduce that, while they might have warned against the adoption of these tokens as valuable elements, investment or transaction currencies, no one has openly noted the possibility of extinguishing the sign. As a result, the adoption of technology and the denial of the value of their basic tokens introduces a completely different dynamic into the debate.
Imagine the ability to access and implement specific blockchains and acquire their free tokens for free. This will automatically redefine the overall industrial dynamics of the ecosystem. The questions that would arise in such cases would be the basis for the supply and distribution of tokens and the possibility of maintaining order in this sector, without a market.
Find the balance
Given the current stage of development of blockchain technology, existing debates and resistance can be considered as normal and advantageous challenges. So far, the protocols have been improved, reflecting more balanced implementations, compared to very early blockchains. These can be credited for research and development exercises, born of critics such as those of the regulatory agencies.
As industry continues to grow and traditional systems try to find the most appropriate ways to get involved, the role of cryptocurrencies must be properly defined. Rather than the initial clamor of most new technology enthusiasts, or the general condemnation of traditional organizations, more objective measures are needed. This will ensure a better defined ecosystem where maximum value can be achieved by a technology that quickly wins universal approval.