Kenya: Bitcoin soon to be national currency

While the Central Bank of Nigeria has banned Bitcoin and other crypto-related activities, the Central Bank of Kenya sees an opportunity to get answers to its problems. Amidst the rising depreciation rates of the shilling, the Central Bank of Kenya wants to change its base currency to Bitcoin.

For several decades, the Kenyan shilling has been on a downward trend. The fiat currency has lost nearly 50% of its value against the US dollar since 2010. In 2020 alone, the shilling fell nearly 10% against the dollar.

 Kenya: Bitcoin soon to be national currency

While the Kenyan government is pointing fingers at the Covid-19 pandemic and the International Monetary Fund for its woes, officials believe that Bitcoin could end the nation's suffering. Speaking on the matter, Central Bank Governor Patrick Njoroge said:

"OUR DECISION TO MOVE TO BITCOIN IS BOTH TACTICAL AND LOGICAL. OUR CURRENCY HAS ALWAYS BEEN THE PUNCHING BAG FOR THE IMF, WHICH ALWAYS CLAIMS THAT THE KENYAN SHILLING IS OVERVALUED. THIS HAS LED TO EXCESSIVE PRESSURE ON THE KENYAN SHILLING, AND THIS HAS A NEGATIVE EFFECT ON THE ECONOMY. WE ARE LOSING TOO MUCH SIMPLY BECAUSE SOMEONE AT THE IMF WOKE UP ON THE WRONG SIDE OF THE BED.  BITCOIN WILL END THAT. "

Njoroge believes the proposed transition will help reduce the country's national debt when prices appreciate.

 Kenya: Bitcoin soon to be national currency

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Although several large companies and institutions have jumped on the Bitcoin bandwagon, Kenya will be the first country to make such a bold move. They could set an example for other countries.

 Kenya: Bitcoin soon to be national currency

Kenya Bitcoin 

This is not the country's first attempt, as it had launched M-Pesa, the forerunner of mobile money in Africa.