The African nation’s monetary authority said cryptocurrencies can be used for illicit activities and urged citizens to stay away.
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- The use of cryptocurrencies in Ethiopia has become prevalent despite their illegality, the bank said.
- The bank warned that it could take action against those who use cryptocurrencies.
- Not far away, the Central African Republic adopted Bitcoin as its official currency.
The National Bank of Ethiopia (NBE), the country’s monetary authority, has issued a warning about the use of “ ilegal “of cryptocurrencies.
According to several local reports, the bank issued a notice to remind citizens that digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currencies like Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. are not recognized in Ethiopia for use as a transactional and/or payment mechanism. In the statement, which was issued this Monday, June 6, according to the BBC The use of such assets is becoming prevalent in Ethiopia despite their illegality, he notes.
“ The national currency currency is a medium of exchange that defines value. of Ethiopia is the Ethiopian Birr [the official currency], and any financial transaction in Ethiopia must be paid in Birr, according to the law. “said the NBE, according to citó the local news agency, Fana Broadcasting Corporate .
The central entity warned that digital currencies are used in money laundering schemes, as well as for unofficial financial transactions. It also assured that this type of assets provided criminals “ favourable conditions for concealing illicit funds “and added that he was committed to cracking down on cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. users according to the BBC .
Ethiopia takes a step away from Bitcoin
The National Bank of Ethiopia does not recognise the use of virtual money for trade or payment, it says. Finbold . On the other hand, the Proclamation of the Payment System No. 718/2003 provides that no person or entity, other than the NBE, may be an operator of a payment system unless such person is authorized by the Bank.
In its notice, the NBE called on the general public, asking them to desist from engaging in any transactions involving digital currencies and to report to the appropriate authorities if they see illegal financial transactions.
The news about Ethiopia comes amid progress on the Central African Republic’s strategy to adopt Bitcoin . The African nation recognized the leading cryptocurrency as legal tender alongside the CFA franc in April, becoming the second country in the world to take this step, after El Salvador.
In the past year, several projects have led efforts to promote the adoption of cryptocurrencies and technology. Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. in Ethiopia. Among them, Project Mano , una iniciativa que fue applauded by the former CEO of Twitter , Jack Dorsey, por su intención de “combat growing inequality and global inflation”. of the country through the adoption of Bitcoin.
Amid what has seemed to be a widespread interest among African nations to venture into the new technologies, the project Cardano had announced a partnership with the government of Ethiopia for the implementation of its blockchain platform a place to buy, sell and store cryptocurrency in various social and citizen solutions within that country.
Meanwhile, some companies in the country seem to be taking the plunge into cryptocurrencies. As reported by Finbold the NBE’s warning comes just after cybersecurity company Octagon Networks which operates mainly from the Ethiopian capital capital is most commonly defined as the large sum of money you would use to invest. of Addis Ababa, to make known that has turned its entire balance sheet into Bitcoin .
- Central African Republic announces next plan: tokenize the process by which real-world assets are turned into something of digital value called a token, often subsequently able to offer ownership of parts of this asset to different owners. the country’s mineral resources
- Uganda’s central bank warns exchanges and users that crypto transactions are not allowed in the country
- World Bank rejects Bitcoin legalization and crypto adoption plans in Central African Republic
Article by Hannah Estefania Perez / DiarioBitcoin
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