The Kenyan government is rethinking its stance on cryptocurrencies, signaling a departure from the Central Bank of Kenya’s (CBK) previous hardline position.
President William Ruto announced that Marathon Digital Holdings has been invited to consult with the National Treasury and Ministry of Energy on the cryptocurrency regime.
Marathon Digital Holdings, a major Bitcoin miner in North America, specializes in converting energy into economic value through Bitcoin transactions and maintaining the Bitcoin ledger.
Ruto explained that Marathon Digital will discuss cryptocurrency mining’s energy needs with the Ministry of Energy, highlighting the importance of energy considerations in this sector. He made these remarks during a meeting with American investors in Nairobi.
In 2015, the CBK warned against cryptocurrencies like Bitcoin, emphasizing that they were not legal tender in Kenya. The CBK cited risks associated with virtual currencies, including their speculative nature, potential for high volatility, and susceptibility to abuse by criminals for money laundering and terrorism financing.
Despite these warnings, the government is now open to revisiting its approach to cryptocurrencies. Ruto’s announcement came during the AMCHAM Business Summit in Nairobi, where several high-profile American and Kenyan officials and business representatives were present. This shift suggests a willingness to explore the potential benefits of cryptocurrencies while addressing concerns about their regulation and usage.
