Kenya’s Central Bank has proposed the use of Bitcoin to counter the depreciating Shilling. According to the apex bank’s governor, Patrick Njoroge, said Bitcoin could solve the country’s currency problem as the Shilling’s depreciation has negatively impacted the economy.
CryptoPotato noted in a report that the Shilling has plunged almost 50% over the past few decades compared to USD since 2010. Over the past year, the Shilling has declined nearly 10% against the dollar. The central bank blames the International Monetary Fund (IMF) for the depreciation.
Apart from the IMF, the central bank also believes the unprecedented coronavirus pandemic also has its effect on the national currency.
Disregarding the risks associated with adopting Bitcoin, Njoroge is optimistic that Bitcoin is a solution to Kenya’s economic challenges.
“Our decision to shift to Bitcoin is both tactical and logical. Our currency has always been the punching bag for the IMF, which always claims that the Kenya Shilling is overvalued. This has led to too much pressure on this Kenyan Shilling and has a negative effect on the economy…Bitcoin will put an end to this.”
The governor also believes that Bitcoin will protect Kenya from forex exchange losses and reduce the country’s national debt as the asset surges.
Image Credits: Pixabay
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