During a meeting with lawmakers on September 19, Njoroge referred to the suggestion as “crazy”. Njoroge cited the volatility of Bitcoin as a reason why converting the reserves into digital currency would be dangerous. 

In addition, he brought up the possibility that cryptocurrencies’ benefactors will pressure politicians. According to him, that pressure will guide the legislative process advantageous for bitcoin usage. The governor said he would be prepared to go to prison for Bitcoin if the government approved it during his tenure. 

Njoroge expressed that he knows they (politicians) are under a lot of pressure from cryptocurrencies’ benefactors. He also made it clear that he has a lot of people urging him to place the nation’s reserve in Bitcoin. He added that he would have to be out of his mind to allow such an event. 

The Potentiality For Cryptocurrency Adoption

As Njoroge pointed out, the government may adopt cryptocurrencies if they begin to provide solutions to a particular problem. This is something that the government may do in the future. He has requested a review of the bitcoin business to move beyond the “hype” surrounding digital assets.

Njoroge further stressed what issue they purport to fix in the economy. He cited an example saying they don’t make superior conveyances for payments or transactions. He asked how much better they solve the issues, if at all. 

He clarified that there are no solutions to the issues he raised that the government could find in the bitcoin space. He said that cryptocurrency is not more secure than a traditional bank account. He suggested more investigation to determine whether or not it can assist them in resolving a problem.

There Are No Regulations In Place For The Crypto Industry

The Central Bank has warned the Kenyan people of Kenya about the dangers of transacting with cryptocurrencies. At this time, there are no comprehensive regulations in place to exercise control over the sector.

In this scenario, most of the institution’s communication has become circulars sent to local banks. The leaflets are centered on warnings to exercise extreme care when doing business with companies that deal in cryptocurrencies or other digital assets.

A recent estimate suggested that a record number of four million Kenyan crypto investors had suffered losses. The losses came as a result of the ongoing sell-off in the market for digital assets. This serves to underscore the gravity of the risks that are involved in the venture.