The Central Bank of Kenya in a historical decision has decided to switch to use Bitcoin as a Reserve currency in order to resolve growing financial problems in the country as per a report from Daily News Arena.
“Central Bank Of Kenya Announces Switch To #Bitcoin” – Dailynewsarena
— Bitcoin Archive ???????????? (@BTC_Archive) February 11, 2021
Patrick Njoroge, Central Bank Governor said that the decision was taken after considering numerous factors including a shortage of foreign currency reserves, increase velocity of money, and shield Kenya from exploitative loans that threaten the sovereignty of Kenya. He explained,
“Our decision to shift to Bitcoin is both tactical and logical. Our currency has always been the punching bag for the International Monetary Fund which always claims that the Kenya shilling is overvalued. This has led to too much pressure on the Kenyan Shilling and this has a negative effect on the economy. We are losing too much simply because someone at IMF woke up on the wrong side of the bed. Bitcoin will put an end to this.”
Kenya Central Bank to Use Bitcoin to Lower Country’s National Debt
The Central Bank Governor reportedly said that they intend to use Bitcoin to reduce their growing foreign exchange losses and help them reduce their national debt. The decision should not come as a surprise to many as Kenya has emerged as the leader in mobile money and have also used bitcoin and other cryptocurrencies as the bridge currency.
The decision by the Kenyan central bank is in quite a contrast to the Nigerian Central Bank’s recent decision to impose a banking ban on crypto traders and exchanges in the country. The decision by the Kenyan central bank also comes on a day when the US Treasury Secretary claimed that Bitcoin would never find its way into the central banks.
The institutions have already started using Bitcoin as a Treasury Reserve asset by converting a portion of their treasury cash into Bitcoin. Now the governments especially the developing nations financially crippled by trade sanctions and a declining national economy.
The article was reportedly published by a Satire Website