The National Bank of Ethiopia (NBE) clarified in a recent statement that transactions using bitcoin or other cryptocurrencies are still “illegal”. Citizens are encouraged to continue trading using the Ethiopian Birr.
- As reported state-owned Fana Broadcasting Corporation (FBC), bitcoin and cryptocurrencies are not yet recognized by the NBE as legal tender.
“The national currency of Ethiopia is the Ethiopian birr, and by law, any financial transaction in Ethiopia must be paid in birr,” the NBE said in a statement.
- The central bank’s concern stems from the alleged use of cryptocurrencies for unofficial transactions and money laundering schemes in Ethiopia. He urged the public to report such “illegal transactions” if they witness them.
- Financial authorities around the world, from the ECB to the Federal Reserve, have raised concerns about the use of cryptocurrencies in financial crimes such as drug trafficking and sanctions evasion.
- Analyst firm Chainalysis has found that illegal transfers of funds in cryptocurrency increase over time, but their share in the total volume of transactions is rapidly declining.
- Ethiopia’s cryptocurrency stance contrasts sharply with the Central African Republic (CAR), which adopted bitcoin as legal tender in April. Currently, the country is planning to create various forms of infrastructure for the introduction of cryptocurrency into the economy.
- However, the Bank of Central African States, which manages the CAR’s legacy currency, the CFA, reportedly opposed the move and has not been consulted about the national bitcoin plan.
- Hedge fund manager Paul Tudor Jones said last month that central banks will do everything they can to stop bitcoin adoption given the threat it poses to their establishment.
“They lose the ability to control the creation and supply of money,” he explained.
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Credit : cryptopotato.com