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Central bank rejects cryptocurrencies as legal tender

Central bank rejects cryptocurrencies as legal tender

The Bank of Namibia this week announced that it does not recognise cryptocurrencies as legal tender in the country, meaning that cryptocurrencies are therefore not considered as an authorised foreign currency and thus the Namibia Dollar is not exchangeable for it.

Kazembire Zemburuka, the Deputy Director of Corporate Communication at the Bank stated that market prices of cryptocurrencies are highly volatile, fluctuate significantly on a daily basis and are unstable with no underlying substantive value and thus it does not meet the minimum standards of any credible currency.

In addition, because of the unregulated nature of cryptocurrencies, individuals that engage in such trading would be doing so at their own risk, and as a result, expose themselves to financial losses due to the lack of regulatory protection,” Zemburuka added.

While the Bank continues to monitor the developments around cryptocurrencies and its impact on the functions of the Bank, Zemburuka noted that they continue to be concerned with potential abuses, including money laundering and associated risks which have been highlighted as major threats associated with cryptocurrencies internationally.

The Bank will continue to educate the public on its position and particularly on the risks associated with cryptocurrencies and therefore calls on the Namibian public to be cautious when presented with information on cryptocurrencies,” he concluded.

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