Kenyan Central Bank Says It’s ‘Craziness’ to Convert Country’s Reserves to Bitcoin

The Kenyan central bank governor Patrick Njoroge has described as “craziness” the calls to convert Kenya’s reserves into bitcoin. He added that he would have to be out of his mind before agreeing to this. Njoroge argued that cryptocurrencies like bitcoin are not only volatile, but are hardly solving any problem.

The Central Bank of Kenya (CBK) governor, Patrick Njoroge, has described the idea of putting the country’s reserves into bitcoin as “craziness.” Njoroge, who was addressing recently elected members of Kenya’s legislature, added that if it occurred that he agrees to convert Kenya’s reserves to bitcoin, he should be jailed and the keys to his prison cell must be thrown away.

Under Njoroge’s stewardship, the CBK has issued statements and advisories warning Kenyan residents against trading or investing in cryptocurrencies. For instance, Bitcoin.com News reported in June 2022 that Njoroge, together with the Central Bank of Nigeria (CBN) deputy governor Kingsley Obiora, had cited cryptocurrencies’ volatility as one of the reasons why they cannot become a widely used payment method.

Yet, despite Njoroge and the CBK’s opposition, several studies have suggested that Kenyan residents’ use of, or investment in, cryptocurrencies is growing. For example, the peer-to-peer crypto exchange Paxful recently revealed that its users from the country had digital assets valued at $125 million during the first half of 2022.

However, in a video recently uploaded to Youtube, Njoroge still questions the benefits of cryptocurrencies for the Kenyan economy. He said:

In our economy what problem are they resolving? Are they better vehicles for let’s say payments, transactions? And the answer is no. Are they better in terms of …. security more than a bank account? And the answer is no.

Further, in his attempts to dissuade lawmakers from entertaining individuals hyping bitcoin and other cryptocurrencies, Njoroge claimed that he too is also being pressured.

“I do know you are under a lot of pressure from some of these people that are pushing these things. Because for them it is good. I can assure you I have a lot of people that are pushing to put our reserves in bitcoin.”

Njoroge however suggested that he would have to be out of his mind before he agrees to this call to convert reserves to bitcoin.

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