In the latest position paper by mid-September 2017, the financial institution of Namibia described that Bitcoin along with other digital currencies present merely a “minimal” threat to the financial policymaking role. However, it claimed the cryptocurrencies aren’t approved in the united states underneath the Exchange Control Act of 1966.
“Additionally towards the bank not recognizing virtual currencies as legal tender in Namibia, additionally, it doesn’t recognize that it is a forex that may be exchanged for local currency. It is because virtual currencies are neither issued nor guaranteed with a central bank nor supported by any commodity.”
The central bank reiterated it cannot endorse any action involving virtual currencies, despite remarkable ability to facilitate remittances along with other consumer payments because of the insufficient a legitimate premise.
The Financial Institution of Namibia mainly reported previous reports through the Worldwide Financial Fund (IMF) and also the Financial Action Task Pressure (FATF) in the position paper. One of the familiar points it elevated, would be the possible utilization of digital currencies on money washing activities, the perceived shortcomings of the currency without support with a government or perhaps a commodity, and also the potential together with your cryptocurrencies’ underlying distributed ledger technology, or Blockchain technology towards the economic climate.
Jennifer Keith is definitely an entrepreneur and advocate for diversity and equality. She’s a diploma in biology and enterprise management. Within the last few years, she’s labored with tech companies within the fintech niche for their proper partnerships. You might interact with her on Twitter.