Central Bank of Kenya (CBK) has warned banks against dealing in electronic currency.
The caution comes against the backdrop of heightened volatility in the values of digital currencies, including the most prominent one – Bitcoin.
CBK Governor Patrick Njoroge told MPs that he had sent a circular to all banks warning them on the dangers of dealing in virtual currencies.
“A banking circular was also issued to all banks by CBK cautioning them against dealing in virtual currencies or transacting with entities that are engaged in virtual currencies,” said Dr Njoroge.
Njoroge made the statement when he appeared before the National Assembly Committee on Finance at Parliament Buildings.
The governor further stated the the warning was consistent with actions taken by other financial regulators regionally and around the world.