Cryptocurrency Adoption Delay in Kenya

Kenya is one of the leading countries in cryptocurrency adoption in Africa. Most of the people involved in cryptocurrency in the country are involved in peer-to-peer trading and have made Kenya and Africa, in general, the largest market for people looking to buy or sell cryptocurrency. Through these trading activities, many of the youth in the country have gained job opportunities and have become responsible members of society. Currently, more than five organizations in the country are introducing people to cryptocurrency and increasing the adoption rate. Through their actions, more people have adopted cryptocurrency in the country. Cryptocurrency adoption has helped reduce joblessness in the country, which has helped reduce the crime rate.

After the growth of cryptocurrency adoption in Kenya, people were excited about the potential that cryptocurrency would have after the government and the Central Bank of Kenya announced that they were investigating the effects of a digital Kenyan currency on the economy. After the announcement of CBDC in Kenya, there was hope that cryptocurrency would take off in the country and lead to more economic stability for its citizens. More jobs would be created, and this would help improve the quality of life in the country. Considering the benefits cryptocurrency would have for the economy, delaying cryptocurrency adoption in the country does not seem to be the smartest decision to be made.

Another factor that made people more excited about cryptocurrency adoption in Kenya after announcing a Kenyan CBDC was the country’s history with mobile banking. Kenya was the first country to have efficient mobile banking in the world. Safaricom, the largest mobile network company in East and Central Africa, introduced M-pesa as their mobile banking service in the 2000s. In less than five years, the services have become a way of life in the country. People would pay for goods and services, and others would save their money on the platform. Others would access fast loans on the platform and use the money in case of emergencies or if they needed the money to boost their business operations.

The country that forged the way forward for mobile banking would be the best place to adopt cryptocurrency as a legal tender and access its performance. But the Central Bank of Kenya Governor, Patrick Njoroge, announced to the press that the organizations were not sure if they would allow the adoption of cryptocurrency in Kenya. According to the report the governor offered to the media and the public, although the Central Bank of Kenya is considering introducing a digital currency in the country, the regulators were in no rush to make the decision. They are not sure how long it will take to legalize cryptocurrency, but they will not stop to deliberate and figure out the effects and the best way to roll out the digital currency. According to experts, although Kenya is the best country to introduce cryptocurrency in Africa due to the high internet speeds and innovative population, cryptocurrency would not have a high adoption rate as witnessed with mobile banking.

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