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Editorials

EDITORIAL: Heed Bitcoin warning

A bitcoin outlet in Hong Kong. FILE PHOTO | NMG
A bitcoin outlet in Hong Kong. FILE PHOTO | NMG 

According to Citi, Kenyans’ Bitcoin holdings of more than Sh163 billion rank as one of the highest across the world at 2.3 per cent of the Gross Domestic Product.

In a study released last week, the bank says ripple effects of a possible collapse of the popular e-currency would cause material disruption in the Kenyan economy.

The analysts are warning that the coin is risky, even though debate on the place of cryptocurrencies is still ongoing globally.

The Central Bank of Kenya has clearly warned about trading and accumulation of Bitcoins, and issued a disclaimer saying should the worst happen it should not be held liable as a regulator.

Against the GDP, Bitcoin holdings are a drop in the ocean in the US at 0.17 per cent; this should be a strong warning coming from a more developed economy.

These warnings may not, at this time, mean much to Kenyans who are running up to two Bitcoin exchanges in Nairobi.

While not discouraging people from the technological developments in the money world, any risks taken should not reach a point where the economy is exposed should the Bitcoin bubble burst tomorrow or in the near future.

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