The Central Bank of Kenya expresses skepticism regarding prioritizing central bank digital currencies (CBDCs), citing potential risks like high implementation costs, financial exclusion, and recent instability in the cryptocurrency market. Monitoring CBDC developments remains crucial for informed future assessments.
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Allure of CBDCs Fading? Kenya’s Cautious Stance Sparks Global Debate on Digital Currencies
Kenya’s Central Bank cautiously states that the allure of Central Bank Digital Currencies (CBDCs) is fading globally, and they are not a top priority in the short to medium term. Although CBDCs offer potential benefits such as lower transaction costs and improved foreign exchange rates, drawbacks such as financial exclusion and vulnerability to cyberattacks remain significant obstacles.
Kenya’s Finance Bill 2023: Digital Asset Tax Debate and its Impact on Crypto Community
Kenya’s Finance Bill 2023 proposes a 3% tax on digital assets, including cryptocurrencies and NFTs, and a 15% tax on online content monetization. While some view this as official recognition of digital assets in Kenya, others argue it amounts to targeted harassment, with advocacy group Cryptocurrency Kenya calling for universal application of digital taxes.
Kenya’s Crypto Tax Debate: Official Recognition or Targeted Harassment?
Kenya’s lawmakers propose a 3% tax on cryptocurrency transfers and non-fungible tokens (NFTs), and a 15% tax on monetized digital content. While some perceive this as official recognition for cryptocurrencies and NFTs, others express concern over targeted harassment or unreasonable taxes.
Balancing Innovation and Regulation: The Cryptocurrency Dilemma in Government Oversight
“Sam Altman, leader of Worldcoin and OpenAI, discussed his concern about US government’s aggressive regulation of the cryptocurrency industry. While accepting the need for regulatory oversight, he criticized the government’s stern approach, arguing it stifles the potential of digital assets particularly Bitcoin (BTC), and highlighted the surveillance risks of Central Bank Digital Currencies (CBDCs).”
Blockchain and Cryptocurrencies: A Rising Force in West Africa Amid Economic Dissatisfaction and Potential Pitfalls
“Blockchain technology, particularly Bitcoin, is gaining traction in West Africa, thanks to education efforts and dissatisfaction with regional monetary policies. However, the journey towards adoption is filled with opportunities and potential pitfalls, emphasizing the need for careful navigation and robust education.”
Blockchain vs Traditional Payments: A Detailed Analysis of Utility, Constraints and Potential
Cross-border payments demonstrate the utility of digital currencies, yet adoption faces challenges like technological issues, competition, and regulatory constraints. Blockchain Officer, Paul Brody, suggests basic fiat payments are faster and cheaper through centralized systems, while blockchain payments can impact speed and cost due to duplication across nodes. Blockchain’s potential may not lie in replacing existing models, but in altering the transaction rules through tokenization and inherent programmability.
Untangling Asset Tokenization: Promising Innovation or a Risky Venture?
“Asset tokenization firm Securitize has acquired a digital asset wealth platform, Onramp Invest, intending to enable registered investment advisors to buy digital tokens. However, growing concerns around risk underscore the need for caution in the decentralised finance (DeFi) world.”
Crypto Symphony: Week’s Highs and Lows from The World of Cryptocurrency
“This week, Bitcoin surged significantly and MicroStrategy plans to further boost its BTC coffers. Meanwhile, Tether marked a successful quarter, generating profits over $1 billion. Surprisingly, ETH 2,879 was rescued from a formidable hack thanks to an ethical hacker and Justin Sun. Volatility continues in the cryptocurrency market.”
Namibia Embraces Crypto Regulations: A Breakthrough or a Setback?
“Namibia has signed a law regulating Virtual Asset Service Providers, reversing its 2017 ban on crypto exchanges. The law aims to enhance consumer protection, curb market abuse, and mitigate money laundering and terrorism financing risks. However, severe penalties apply for non-compliance and cryptocurrencies still hold no legal tender status in Namibia, potentially creating a hostile environment for crypto businesses.”
Bundle’s Strategic Pivot: Swapping Crypto Exchange for P2P Dominance in Nigeria
Bundle, the renowned social payments platform, has decided to discontinue its crypto exchange service to focus on its successful peer-to-peer platform, Cashlink. Despite Nigeria’s tough stance on digital currency transactions, the country remains a hotspot for crypto activities, particularly through peer-to-peer platforms.
IMF’s Stance on Crypto and CBDCs in Latin America: Accelerated Adoption vs. Regulations
The IMF discusses the accelerated adoption of cryptocurrencies and CBDCs in Latin American and Caribbean countries, stating that well-designed CBDCs could simplify remittances and financially include more citizens. However, they emphasized the need for proper regulation and consider crypto to be risky overall.
Crypto Market Struggles Amid Equities Rally: Analyzing Pros, Cons, and Conflicts
Cryptocurrency markets remain subdued, with interest lacking due to the absence of institutional buying. Investors should watch for strong recovery signs in Bitcoin and altcoins. Meanwhile, Ether’s rebound potentially indicates a sentiment shift as cryptocurrency markets face uncertainty and caution.
M-Pesa Shakes Up Ethiopia’s Mobile Money Scene: Digital Finance and Crypto’s Murky Status
The National Bank of Ethiopia has issued a mobile money-service license to M-Pesa, challenging state-owned Telebirr’s dominance. This development supports Ethiopia’s shift towards greater financial digitalization and increased digital payments accessibility for unbanked Ethiopians. Nonetheless, the legal status of crypto assets remains unclear in the country.