Patrick Njoroge, governor of the Central Bank of Kenya, described the call to convert Kenya’s reserves into bitcoin as “madness.” He added that one would have to be crazy before agreeing to this; Njoroge argued that cryptocurrencies like bitcoin are not only unstable, but have solved few if any problems.
CBK Governor Says Converting Kenya’s Reserves into Bitcoin Deserves Jail Time
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Central Bank of Kenya (CBK) Governor Patrick Njoroge described the idea of putting the country’s reserves into bitcoin as “madness.” Njoroge, who was addressing members of Kenya’s recently elected legislature, added that if he happened to agree to convert Kenya’s reserves into bitcoin, he should be jailed and the key to his prison should be thrown away.
Under Njoroge’s stewardship, CBK has issued statements and advisories warning Kenyan residents against trading and investing in cryptocurrencies. For example, Bitcoin.com News reported in June 2022 that the Njoroge, along with Central Bank of Nigeria (CBN) Deputy Governor Kingsley Obiora, cited the volatility of cryptocurrencies as one reason why they cannot become a widely used payment method.
However, despite Njoroge and CBK’s objections, several studies suggest that Kenyan residents’ use of and investment in cryptocurrencies is increasing. For example, Paxful, a peer-to-peer crypto exchange, recently found that users in the country had digital assets worth $125 million in the first half of 2022.
Njoroge: No Problems Being Solved by Cryptocurrencies
However, in avideorecently uploaded to Youtube, Njoroge still questions the benefits of cryptocurrencies for the Kenyan economy. He states.
What problems do they solve in our economy? Are they, for example, better vehicles for payment and trade? And the answer is no. Are they better in terms of security than bank accounts? And the answer is no.
Moreover, Njoroge claimed that he too was under pressure to discourage lawmakers from entertaining individuals promoting Bitcoin and other cryptocurrencies.
“I know you are under a lot of pressure from some of these people who are promoting these things . Because for them it is a good thing. I assure you that there are many people who are pushing to put our reserves in bitcoin.”
But Njoroge suggested that he would have to be crazy before agreeing to this call to convert reserves to bitcoin.
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