Malawi Central Bank Warns Against Cryptocurrency Author: Ali Raza Last Updated: 18 June 2020 Bitcoin has won the hearts of many big establishments lately. We’ve been getting reports that these big players in key industries are adopting it for payments of goods and services. No wonder the heads of our traditional banking institutions have started to panic. Well, even the proponents of the digital currencies know that they’re not a legal tender. So, what’s the ruckus? But we believe that there is a reason behind the recent warnings of the RBM governor. Crypto Activities On the Rise in Southern Africa We got a recent report that the Reserve Bank of Malawi governor is concerned over the interest in cryptocurrencies. Dr.Dalitso felt the need to make a statement concerning the popularity of crypto in the country. According to him, the bank has discovered that people’s interest to buy Bitcoin is increasing alarmingly. We don’t blame him because his statements points at receiving many inquire about crypto from the general public and others. Governor Kabambe also pointed out that crypto trading activities have been increasing in the country as well. Another concern which the governor shared was the use of crypto assets for online transactions. According to him, using these coins to invest online or carry out monetary requirements is not acceptable. He declared clearly that the central bank does not recognize cryptocurrencies at all. RBM Governor Warns That Crypto is not a legal tender One reason for the dire warnings by the governor is because cryptocurrencies are not under any bank or public institution. We can attest to the fact that there is no central controlling authority over the activities of cryptocurrencies. This is how the technology works. For instance, bitcoin doesn’t have a central authority. Anyone can create new coins through mining. The governor feels that this arrangement is not ideal. This is why he made the statements to warn participants in Bitcoin trading to be very careful. The governor was specific in saying that that crypto users should be mindful of players in the industry. According to him, crypto firms, educators, advisors and entrepreneurs do not have the credibility that people should trust. For instance, there is no single crypto exchange in the country with a license to operate. To show support for the blockchain tech, the governor pointed out that its benefits go beyond crypto. Let’s point out that Malawi is trying to recover from the election and its controversies. The Reserve Bank of Malawi is part of the central banks and institutions that prefer blockchain to bitcoin. Some African Countries Adopts Crypto Many countries in Africa are leaning towards the digital coin. For instance, those countries with cash issues are adopting cryptocurrencies. Let’s recall that the Central Bank of Zimbabwe banned cryptocurrency in May. However, when the country appointed a new finance minister in September, the statement changed. The new minister’s view was that cryptocurrencies could solve the cash challenges of the country.