It has been announced by the Central Bank of Malawi that cryptocurrency is not legal in the country and the bank is completely against activities associated with the new age currency. According to the report by Nyasa Times, the statement which was released on Monday has piqued the interest of the public in cryptocurrency and has also increased the number of inquiries on this particular subject from the stakeholders and the general public.
Some of the cryptocurrencies mentioned in the bank statement are Bitcoin, Litecoin, Ethereum, Dach, and Ripple, which are very popular, yet not devoid of risks.
Bank Refuses to Take Responsibility
The governor of Reserve Bank of Malawi (RBM), Mr. Dalitso Kadamabe has asserted that the RBM will not be accepting cryptocurrency, even though it is fully cognizant of the fact that it is used as a medium of exchanging money, a store of value and assets invested online. Kadambe went on to state that the general public or the business entities should be using cryptocurrency at their own risk, and the bank will in no way be responsible as they are not legal consumer resource.
Kadambe continues by saying that there are other risks persisting in the usage of cryptocurrency like there might be user errors or technological failure. RBM also urges individuals to restrain or take safety measures while investing in cryptocurrency because users might risk losing money since there is not any regulatory protection that would serve as compensation. Kadambe also blames the borderless nature of cryptocurrency, which might cause its failure.
The RBM has not recorded any transaction through cryptocurrency, and they have proposed a stringent prohibition for it. The RBM authorizes no inbound or outbound foreign investments in cryptocurrencies as well. The other authorities of African countries like South Africa are, however, not so skeptical. South Africa, in fact, issued a paper stating that it has no intention of banning crypto.