The National Bank of Ethiopia (NBE) says it does not recognize cryptocurrency as a legal method of payment and residents must avoid its use. The bank maintains that the local currency bill is the only legal means of settling transactions in Ethiopia.
Illegal Transactions
Ethiopia’s central bank is warning citizens not to engage in “illegal” cryptocurrency transactions, according to a report. The report adds that the central bank has yet to recognize cryptocurrencies like Bitcoin as a payment method.
In itsreportstate-run media outlet Fanabc noted a statement by the National Bank of Ethiopia (NBE) reminding the country’s residents that the currency bill is the only legal tender in Ethiopia.
“Ethiopia’s national currency is the Ethiopian Birr and all financial transactions in Ethiopia are paid in Birr according to the law,” the central bank reportedly said.
Residents are required to report crypto transactions
Ethiopia, like many African countries, has not completely banned the use of cryptocurrencies, taking a wait-and-see approach (). However, this approach does not stop the Ethiopian government from working with Cardano.
Cardano’s acceptance and the government’s apparent warming to blockchain technology has not stopped the NBE from repeating its claim that cryptocurrencies are primarily used in money laundering schemes. The central bank also urged residents to report any such transactions they encounter.
Image credits: Shutterstock, Pixabay, Wiki Commons