Dr. Patrick Njoroge has reiterated the position of Central Bank of Kenya on cryptocurrency stressing that there is no currency in cryptocurrency.
“Crypto is just crypto. It does not have currency in it considering that it neither has legal framework to support and nor standards to protect the consumer.”
Dr. Patrick Njoroge, Governor Central Bank of Kenya
While presenting a keynote at the CBK Governor, CEOs & MDs Roundtable during the onset of Kenya’s eagerly awaited Fintech Summit 2018 themed: Collaboration and Co-Innovation in the Financial Services Industry, Dr. Njoroge castigated the crypto. He said: “Crypto is just crypto. It does not have currency in it considering that it neither has legal framework to support and nor standards to protect the consumer.”
“Anyone in the financial service industry should be keen on matters stability, integrity and consumer protection,” underscored the regulator adding: “We are not averse to emerging technologies like blockchain and artificial intelligence,” said noting there is reason to intensely question about transaction on the medium that are not regulated such as crypto.
It is important to know that while CBK is excited about blockchain and we shall be wide alert on the kind of solutions being brought on the table and the magnitude of specific risks that it might bring into the ecosystem said Dr. Njoroge adding: “CBK has no reason to stifle innovations but we shall keep laying more emphasis that we need projects that are beyond class projects.”
Compliance should complement with the works that have been laid down by the regulatory foundation which are steadily evolving. In this regard, the regulator took note of the great chance fintech start-ups have paved for financial inclusion.
Pointing out that the country has enormous data, Dr. Njoroge stressed on the need of managing the existing and any other additional data gathered by various institutions in favour of the end-user.
“In Kenya, some organizations are already facing extreme challenges owing to misuse of the data footprint. He gave Cambridge Analytica as an example of an organizations negatively used data consumer’s data.
The Cambridge Analytica case puts to the fore data privacy and protection laws in Kenya. The consultancy is alleged to have collected data from about 50 million Facebook users without consent to build behavioural models based on voter patterns. The firm was linked with involvement in the recent US and Kenyan elections.
Financial technology (Fintech) is on the rise in the financial service industry (FSI) aligning with the constant changing dynamics of the industry, one thing is for certain ICT will be present every step of the way.