Central Bank of Uganda Warns Citizens Against Online Crypto Currency

Crypto currency entrepreneurs will be kicking the dust at the recent statement released by the Central Bank of Uganda.

In trying to catch up with the rest of the world, African online currency enthusiasts and crypto currency entrepreneurs have continued to do all they can to introduce the online currencies and blockchain into the Ugandan economy and markets.

But there is no doubt that the recent Central Bank of Uganda statement will scare away the few who thought to consider investing in the online currencies and blockchain.

The statement was signed and delivered by the deputy governor of the Central Bank, also known as the Bank of Uganda, where he warned the public about investing in cryptocurrency.

According to him, there were no securities from any financial institution and that they should be aware of the limited protections offered them when they invest in unregulated cryptocurrencies.

The Ugandan daily New Vision reported earlier this morning that the bank’s deputy governor — Dr. Louis Kaskende — made his remarks during a Town Hall meeting in the city of Masaka, which was devoted to educating the public about the institution’s activities and role.

Despite bitcoin being designed, in particular, as politically-neutral money, Kaskende reportedly underscored the risks of crypto trading and adoption, stating that:

“Online cryptocurrency businesses are not regulated at the moment and therefore carry a significant risk of loss of savings, with no recourse to protection or insurance by government, like is the case with regulated financial institutions such as commercial banks,” he said.

In his remarks, the governor clarified that the central bank does not have comprehensive oversight of all financial services firms and institutions and that its supervision typically spans commercial banks, credit institutions, foreign exchange bureaus, and money remittance service providers.

This is not the first time that authorities in Uganda including its President, Yoweri Kaguta Museveni and the Central Bank of Uganda officials have warned against investing in cryptocurrency and Bitcoin.

In 2017, the bank of Uganda released a started targeted at One Coin, where it said:

“Bank of Uganda (BoU) wishes to notify the general public that the entity. ONE COIN DIGITAL MONEY is not licensed by the BoU under the Financial Institutions Act, 2004 and is, therefore, conducting business outside the regulatory purview of the BoU.”

Header Image Credit: Hosi Tech