The Ugandan Minister of Finance, Matia Kasaija announced that the government does not recognize cryptocurrencies as a legal tender. He revealed that Ugandans who invest or transact with the digital currency do so at their own risk. With this move, Uganda has joined the governments of Nigeria, Botswana, and Morocco in fighting against cryptocurrency.
The bank of Uganda posted a Tweet to support this claim.
‘Keep off cryptocurrencies’
Until regulations have been formulated, the Govt. has advised the public to tread with caution on cryptocurrencies. Finance minister Matia Kasaija said yesterday that the Govt. does not recognize any cryptocurrency as legal tender in Uganda… pic.twitter.com/u6MYTRg9P0
— Bank of Uganda (@BOU_Official) October 1, 2019
Cryptocurrencies have grown immensely over the years because it is not liable to government regulations. Considering that it cannot be physically owned, transferred and also do not rely on government financial bodies to bloom.
Due to this, government regulatory agencies and financial institutions globally seek to understand its modus operandi for regulatory purposes. As a result, many governments, regulatory agencies and financial institutions around the world are still seeking to understand the way it works and how best to regulate it.
African governments joined some global leaders in understanding, regulating and utilizing the currency’s potential to scale their economy. South Africa, Rwanda, and Kenya are part of the countries trying to regulate the digital currency and leverage its potential. South Africa selected Bankymoon, a blockchain company to test-run digital currency regulation. Kenya is checking out the hitches and advantages of blockchain technology, while Rwanda plans to launch a digital currency.
However, countries like Egypt, Ghana, Mauritius, and Tanzania allow businesses with an approved license to trade cryptocurrencies. Some countries in Africa are cool with the currency while others are not. Nigeria, Botswana, Morocco, and Uganda have warned their citizens to be wary of the currency as they are likely to fall prey to fraudsters.
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