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Digital currency promoters now push for limited licence

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

Promoters of digital currencies in the country are pushing regulators to develop a framework that will create a “safe space” for transactions to be tested before being released to the public.

The promoters are pushing the idea of a cryptocurrency sandbox, which will initially allow the digital currencies business to operate in a controlled environment before being released to the wider economy. Speaking during a public forum on cryptocurrencies in Nairobi, they said there was need to appreciate the risks but not discourage the use.

“If we have innovators in the space instead of blacklisting them invite the put them in a specific area and allow them to test their technologies for a certain period of time,” said John Walubengo, a member of the National Task Force on Blockchain and Artificial Intelligence.

“Allow them to interact with consumers, but instead of being open engage with only a few of them then run the technology for about six months… and see the challenges and risks that are involved and from there develop regulations that will allow the technology to go to the outside world.”