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Namibia Central Bank To Complete Crypto Study By April 2022

The Bank of Namibia (Central Bank of Namibia) is planning to finish its cryptocurrency research by April 2022, according to central bank governor Johannes Gawaxab. The governor, however, emphasized that cryptocurrencies are not legal money as there is presently no provision in the country’s legislation for digital currency usage.

Although Gawaxab acknowledges that cryptocurrencies “are not a bad thing,” he believes that efforts to legalize their usage in Namibia would be difficult. The governor explains in a video published (June 2021) by the country's public TV why it is not easy to officially introduce cryptocurrencies in Namibia. He elaborated:

As Common Monetary Area [CMA] four countries, Lesotho, Swaziland, South Africa and Namibia, we need to collectively look at the cryptocurrencies. We cannot look at [this] just as one country because this going to impact the [entire] CMA currency pool.

The Governor explained that Namibia, as a member of the CMA, is obliged to adopt exchange and monetary policies compatible with the other three member states. As a result, as reported by Gawaxab, Namibia will only integrate cryptos when the CMA — whose policies are heavily influenced by the South African Reserve Bank — unanimously approves it.

Despite the lack of regulations governing the use of digital currencies, Gawaxab has warned Namibians about the risks of cryptocurrency trading. Gawaxab’s warning is the second time BON has worried about the spread of cryptocurrency-related frauds. According to Bitcoin.com News, the central bank warned Namibians, that it would not process complaints from victims of cryptocurrency-related schemes in June 2021.

Key Takeaways

a) Currently, the Central Bank does not recognize or support cryptocurrency ownership or trading.
b) The decision to investigate cryptocurrency could be a precursor to Namibia’s efforts to begin adoption.

Credit:

  1. Youtube video: Bank of Namibia to complete a study on cryptocurrencies by April 2022 — NBC
  2. Bank of Namibia Warns Crypto Traders It ‘Will Not Entertain Complaints’ if They Get Scammed

*Editors note

Sankore 2.0 is an Africa-focused community integrating the NEAR blockchain with projects and solutions conceived and built by local developers in Kenya. As noted in the content of this blog, Sankore 2.0 seeks to promote the development of Web3 products in Nairobi — for Kenya and for Africa as a whole

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