Key Takeaways
- Currently, the Central Bank does not recognize or support cryptocurrency ownership or trading.
- The decision to investigate cryptocurrency could be a precursor to Namibia's new efforts to begin adoption.
- As countries seek ways to create their own digital currency, Africa has maintained its lead in peer-to-peer trades.
The Bank of Namibia (BON) is on track to finish its cryptocurrency research by April 2022, according to central bank governor Johannes Gawaxab. The governor, however, emphasized that cryptocurrencies are not legal money since there is presently no provision in the country's legislation for digital currency usage.
Although Gawaxab acknowledges that cryptocurrencies "are not a terrible thing," he believes that efforts to legalize their usage in Namibia would be difficult. The governor explains why it is almost difficult to officially introduce cryptocurrencies in that nation in a video published by the country's public television. He elaborated:
As four Common Monetary Area [CMA] nations, Lesotho, Swaziland, South Africa, and Namibia, we must examine cryptocurrencies together. We cannot consider [this] as a single nation since it would affect the [entire] CMA currency pool.
As a member of the CMA, Namibia is obligated to adopt foreign exchange and monetary policies that are compatible with the three other member nations. As a result, as stated in the Gawaxab, Namibia will only integrate cryptos if the CMA — whose policies are allegedly strongly influenced by the South African Reserve Bank — unanimously approves.
Despite the absence of regulations governing the usage of digital currencies, Gawaxab cautioned Namibians about the risks of cryptocurrency trading. Gawaxab's warning is the second time the BON has voiced worry about the spread of cryptocurrency-related frauds. According to Bitcoin.com News, the central bank earlier warned Namibians that it will not consider complaints from victims of cryptocurrency-related schemes in June 2021.
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