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The Kenyan government has invited a consultant to reevaluate the cryptocurrency regime. This indicates a departure from the rigid stance that the Central Bank of Kenya (CBK) has previously taken on digital currencies. According to President William Ruto, Marathon Digital Holdings has been invited to consult with the National Treasury and Energy Ministry regarding the cryptocurrency regime. Marathon Digital Holdings is one of North America's most significant Bitcoin miners. The corporation converts energy into economic value by conducting Bitcoin transactions, producing newly minted Bitcoin ("BTC"), and maintaining the distributed ledger of Bitcoin. Ruto stated that Marathon Digital will converse with the Ministry of Energy regarding the energy requirements associated with cryptocurrency mining.
During a meeting with American investors in Nairobi last week, he stated that Marathon Digital has been directed to consult with the Treasury on the cryptocurrency regime and the Ministry of Energy to address the energy requirements associated with cryptocurrency mining. CBK warned Kenyans in 2015 regarding cryptocurrencies, including Bitcoin. The organization stated that Bitcoin is not a legal tender in Kenya. As a result, there is no protection if the platform that exchanges or retains the virtual currency fails or goes out of business. CBK cautioned Kenyans that most transactions involving virtual currencies are untraceable and clandestine, rendering them vulnerable to abuse by criminals in financing terrorism and money laundering. Some risks are associated with purchasing, holding, or trading virtual currencies.
Virtual currencies are speculative in nature, and there is no underlying or backing of assets. This could expose users to losses by causing high volatility in their value. CBK reiterates that Bitcoin and comparable products are neither regulated in Kenya nor considered legal tender. CBK issued a statement advising the public to avoid transactions involving Bitcoin and comparable products. The President addressed the AMCHAM Business Summit in Nairobi. The event was attended by the United States Secretary of Commerce, Gina Raimondo; the Kenya Investment and Trade Cabinet Secretary, Rebecca Miano; the US Ambassador to Kenya, Met Whitman; representatives of numerous American and Kenyan corporations; and government officials.
editor
A digital nomad exploring the limitless potential of decentralized finance in a centralized economy.