According to a report in the Daily News Arena, the Central Bank of Kenya said it decided to use Bitcoin as a reserve currency to solve the country’s economic problems.
After the government of Nigeria declared yesterday on Twitter that Bitcoin could replace Naira soon, Patrick Njoroge, governor of the Central Bank of Kenya, also declared his support for Bitcoin.
The decision to use BTC as a reserve currency would have already been made considering also the speed of transactions and the fact that exchanging Naira for other foreign currencies is not very convenient.
These are Njoroge’s words:
“Our decision to switch to Bitcoin is tactical and logical. Our currency has always been the punching bag of the International Monetary Fund, which always claims that Kenya’s shilling is overvalued. This has put a lot of pressure on the Kenyan shilling and has had a negative effect on the economy. We are losing a lot simply because someone at the IMF woke up on the wrong side of the bed. Bitcoin will end this ”.
Bitcoin in Kenya
In September 2020, the Kenya Young Entrepreneur Network (YEN) also announced that it had developed a new stablecoin called YENTS, which is based on the Kenyan shilling.
It is worth mentioning that Bitcoin has been widely used in Kenya for years and there is a documentary that explains how, in 2015, BTC was very popular in this country:
Overall, cryptocurrency transactions in Africa have increased to a value of 55%, showing that cryptocurrencies are widely used on the continent.
Essentially, this is a phenomenon similar to that of Venezuela: countries with greater economic difficulties and where inflation is high prefer to use cryptocurrencies instead of the local currency.