All cryptocurrencies have experienced several rallies and crashes, so it is understandable why the central governing authorities are measured about taking a laissez-faire approach.
Currently, the sandboxes that promised breakthrough support – especially on the regulatory and policy front are quite indolent.
Technology should work like magic. A promise is met without having to understand any underlying mechanics. Think for a moment of all the things you have used today without a second thought on their ability to meet your need.
You probably jumped into a vehicle – private or public — a plane, a train, flicked on a light switch, tucked into a hearty breakfast cooked on an LPG stove among many other conveniences and utilities.
Yet you probably have no working knowledge of how engines function, no idea about aerodynamics, how electricity gets to you, or how that literal bomb sits in your kitchen safely. It just works!
The Central Bank of Kenya has recently released a discussion paper on Central Bank Digital Currency (CDBC) that has the blockchain community hopeful that progress will be made towards accepting blockchain-based innovations.
In the past, the Central Bank whose mandate is to “promote financial stability through regulation, supervision and licensing of financial institutions and provide oversight of payment, clearing, and settlement systems to foster liquidity, solvency and proper functioning of the financial system” has been non-committal on the place and function of blockchain-based interventions in the financial services sector.
The Governor has on several occasions issued cautionary memos to its licensees that have resulted in a myriad of actions based on interpretation, that include restricting access to bank accounts and mediums deemed to be facilitating participation in the blockchain derivative that is cryptocurrency.
All cryptocurrencies have experienced several rallies and crashes, so it is understandable why the central governing authorities are measured about taking a laissez-faire approach.
However, I believe that eventually consumers determine what comes to, and is adopted by the market. The sheer interest and investment into blockchain solutions should be a pointer to the general market movement.
If we hope to continue to build up the Silicon Savannah as a hotbed for innovation, we should allow for better and faster collaborations with innovators – be they startups or incumbents looking to create value now and into the future.
Currently, the sandboxes that promised breakthrough support – especially on the regulatory and policy front are quite indolent, taking far too long to onboard and chaperone concepts even where there is a direct line of sight to value.
My bet is that decentralised finance in its many flavours, working in the magical opaqueness that I spoke of earlier which is also found in many other financial instruments albeit having higher capital requirements to participate, will drive the mass adoption of blockchain solutions and I am here for it.
Njihia is the head of business and partnerships at Sure Corporation | www.mbuguanjihia.com | @mbuguanjihia
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