EAST African Community (EAC) member states are moving to adopting a regional single currency with caution over growing adoption of cryptocurrencies or digital designed currencies, including the famous Bitcoin, the ‘Daily News’ can establish.
In translating its dream into reality,
the EAC Partner States aim to harmonise monetary and fiscal policies,
financial, payment and settlement systems. Other areas include the need
to harmonise financial accounting and reporting practices; harmonise
policies and standards on statistical information and establish an East
African Central Bank.
The ‘Daily News’ contacted the Central
Bank (BoT) management on the threat of growing use of digital currencies
to the region’s intention to have a single currency to be used across
its six members -- Tanzania, Kenya, Uganda, South Sudan Rwanda and
Burundi.
In response, Tanzania’s Central Bank
Director of NationalPayment System, Mr Bernard Dadi said the process
leading to adoption of a single currency was still underway, albeit new
challenges such as the growth of Bitcoin, one of the famous virtual
currencies.
“The objective of Bitcoin founders is
quite different from that of Community Member States on establishing a
single currency. As we’ve said, the process to have a single currency is
still underway with consideration of available challenges including the
growth of Bitcoin,” Mr Dadi responded.
The Central Bank of Kenya, says Mr Dadi,
had since warned the people over increasing adoption of the
cryptocurrencies including Bitcoin. According to the BoT official,
Uganda is another EAC member state that has warned its people against
the use of the Bitcoin.
“Not just in Kenya … South Africa,
Swaziland, Namibia, Uganda and other African nations have since warned
their people over Bitcoin,” he added. Public warning apart, the BoT has
told the ‘Daily News’ that it would soon issue a policy directive on the
usage of the cryptocurrency within Tanzania.
Prior to the issuing of highly
anticipated policy directive, the official says that “…cryptocurrency
experts from UK have already conducted workshops for BoT management and
senior staff on these currencies.” In addition, he says, the ongoing
process covers approval of some recommendations resulting from workshops
that covered Central Bank of Tanzania board members.
Climaxing in 2017, Bitcoin dropped
sharply to $16,563 and then $12,191 close to Christmas Day, after having
shot to as high as $19,000 on some exchange networks over the last
quarter of last year. Data compiled by Bloomberg, an online platform
that delivers business and markets news, data, analysis and video
worldwide, shows that the Bitcoin dropped by almost 40 per cent.
According to the EAC website,
co-operation in monetary and fiscal matters in order to establish
monetary stability within the Community now aims at facilitating
economic integration efforts and the attainment of sustainable economic
development of the Community.
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