Kenya Central Bank Explores Using Bitcoin to Fight the Depreciating Shilling
Bitcoin fixes this. Odd to see Bitcoin paired with “Central Bank” positively in an article but here we are:
Kenya’s national currency, the Shilling, has been on a downward trend for the past few decades as it has lost nearly 50% of its value compared to the US dollar since 2010. In the past year alone, the Shilling is down by almost 10% against the greenback.
Apart from the apparent effects of the COVID-19 pandemic, the country’s Central Bank Governor blamed the International Monetary Fund for the Shilling’s weakening as well.
Consequently, the institution has proposed a rather radical plan to solve the nation’s issues – going into Bitcoin. Although such a move could be considered risky, as no other country has done it so far, Njoroge believes that BTC could end Kenya’s suffering.
“Our decision to shift to Bitcoin is both tactical and logical. Our currency has always been the punching bag for the IMF, which always claims that the Kenya Shilling is overvalued. This has led to too much pressure on the Kenyan Shilling, and this has a negative effect on the economy. We are losing too much simply because someone at IMF woke up on the wrong side of the bed. Bitcoin will put an end to this.”
Njoroge believes that the primary cryptocurrency would shield Kenya from Forex exchange losses and will even lower the nation’s national debt as its price appreciates.