The Central Bank of Kenya has reportedly started negotiations with international central banks to investigate the possibility of entering the central bank’s digital currency.

The Governor of the Central Bank of Kuwait, Dr. Patrick Njorog, told reporters during Financial Technology Week in the country’s capital Georgetown:

“We [the Central Bank of Kuwait] are already negotiating with other global players in various ways to adopt the central bank’s digital currencies. This pressure comes from the proliferation of private cryptocurrencies, and we already feel that we are being neglected, and we need to create our own space. ”
According to Dr. Ngorod, the central bank should keep track of the “place” where cryptocurrencies compete in the private sector. The Governor of the Central Bank of Kuwait has identified money laundering and the financing of illegal activities as one of the institution’s key tasks. However, he was less convinced that the global trend was heading towards a truly cashless society, describing events as a trend towards just a “less fluid” environment.

Dr. Ngorog’s direct link to ongoing global research on how to make digital currency available to the central bank, in principle to the general public, seems to put the digital currency imposed by the central bank in direct competition with decentralized currencies.

The governor of the Central Bank of Kuwait has also expressed a somewhat dismissive attitude towards Bitcoin (BTC), calling it merely a speculative instrument. Although he found the coin’s core technology impressive, he said it was still an invention that needed a solution.

As cryptocurrencies increasingly circulate on the African continent, entrepreneurs in the local industry – with cautious optimism – are preparing for the possible launch of stricter rules. Stephanie Zoe from Kenyan Bitpesa told Cointelegraph in September 2020 that while there is a risk of drastic intervention that is overwhelming interference, better integration with traditional financial infrastructure can be a boost for the crypto space.

Source: CoinTelegraph