Namibia's central bank states that Bitcoin can be accepted as payment
Although cryptocurrencies do not have the legal status of legal tender in Namibia, the Bank of Namibia (BON) has announced that it has now included "virtual assets (VA) and virtual assets service providers (VASP) under its Fintech Innovations Regulatory Framework in a phased approach, through its innovation hub."
In a statement issued shortly before the end of September, the BON also stated that, while digital currencies such as Bitcoin (BTC) are still not legally recognized, retailers and dealers may accept them if they are "willing to participate in such an exchange or trade."
Notably, the central bank has stated that it is considering amending "applicable laws and regulations diligently in consultation with other relevant authorities."
The bank's new stance on cryptocurrencies seems to indicate that the BON is warming up to them. Previously, the central bank stated:
It did not "recognize, support, or recommend the public's possession, use, or trading of cryptocurrencies." The bank also cautioned Namibians that they would have no legal recourse if they lost money.
Future of money as an 'infexion point'
In the statement, BON Governor Johannes Gawaxab, who has previously been sceptical of cryptocurrencies, is quoted as saying that the future of money has reached a critical point. He went on to say:
“The future of money is at an inflexion point. The battle between regulated and unregulated money on the one hand, and sovereign versus non-sovereign money on the other.”
Gawaxab, on the other hand, contends that central bank digital currencies (CBDCs) offer something that privately issued or developed digital currencies cannot. Nonetheless, the BON governor emphasized that his institution, which is also investigating and studying the feasibility of forming a CBDC, would not rush into it.
“If CBDCs are explored and implemented with due care and caution, they could hold immense potential benefits for a more stable, safer, more widely available, and less expensive means of payment than private forms of digital money,” Gawaxab added.
“If CBDCs are explored and implemented with due care and caution, they could hold immense potential benefit for a more stable, safer, more widely available, and less expensive means of payment than private forms of digital money,” said Gawaxab.
The BON also stated that a CBDC consultation document will be released in October.
