Kenyan Crypto Enthusiast Urges Authorities To Tokenize Economy
Bitange Ndemo, DLT and AI task force chairperson in Kenya, called on the authorities to tokenize the local economy. In his opinion, the adoption of cryptocurrencies at the official level will help defeat corruption in the country, the local newspaper The Star reports.
Kenyan authorities formed a special group responsible for the introduction of artificial intelligence (AI) and distributed ledger technology (DLT) into the state infrastructure, which comprises representatives of local blockchain projects, analysts, as well as regulators and lawyers. In particular, experts are searching for ways to use blockchain in the public sector.
Through the tokenization of the economy, the Kenyan government will be able to defeat corruption and instability in the finance sector, according to Bitange Ndemo’s statement during the meeting of the Information and Communication Technology Ministry (ICTM). In addition, the crypto enthusiast views this as a way to reduce the issuance of paper money in the country.
The chairperson of the working group proposed that young people have to actively use cryptocurrencies and get their salaries in tokens. Likewise, Ndemo is confident that the introduction of the national cryptocurrency can reduce the unemployment rate.
Moreover, Ndemo believes that Kenya needs to launch a digital currency equivalent to local fiat money.
In turn, the ICTM promised to formulate and establish relevant norms based on the recommendations provided by the task force.
Central Bank of Kenya (CBK)
It is noteworthy that the Central Bank of Kenya (CBK) recommended all the country’s financial institutions to avoid any operations with cryptocurrencies, and also warned about the risks of cooperation with crypto companies in April 2018. Patrick Njoroge, the chief of the CBK, explained this statement by positing that digital assets are often used in criminal activities due to the anonymity of traders and absence of the central supervisory authority.
As previously reported, Australian regulators stopped five ICOs.