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Ethiopian Central Bank warns that trading with crypto is illegal - India Blogger

The National Bank of Ethiopia (NBE) clarified in a recent statement that it is still “illegal” to conduct transactions using bitcoin or other cryptocurrencies. Citizens are encouraged to continue business by using Ethiopian Bir.

  • As reported by state-affiliated Funa Broadcasting Corporate (FBC), bitcoin and cryptocurrencies are not yet recognized by the NBE as a legitimate means of payment.
  • “The national currency of Ethiopia is the Ethiopian Birr; any financial transaction in Ethiopia is to be paid for in Birrs,” the NBE said in a statement.

  • The central bank’s concern lies in the alleged use of crypto for informal transactions and money laundering schemes in Ethiopia. It called on the public to report such “illegal transactions” if they spot them.
  • Financial authorities around the world, from the ECB to the Federal Reserve, have shown concern over the use of crypto in financial crimes, such as drug trafficking and theft of sanctions.
  • Blockchain intelligence firm Chainalysis found that illicit money transferred in crypto has been increasing over time, but is rapidly declining as a share of total transactions.
  • Ethiopia’s crypto position is in contrast to the Central African Republic (CAR), which adopted bitcoin as legal tender in April. The country is now planning to build different types of infrastructure to embed crypto in the economy.
  • However, the Bank of Central African States – which regulates the CAR’s legacy currency, the CFA – reportedly opposed the move, and the country’s bitcoin plan was not consulted.
  • Hedge fund manager Paul Tudor Jones said last month that central banks will do whatever they can to stop the adoption of bitcoin, noting that it threatens their establishment.
  • “They lose the ability to control the creation and supply of money,” he explained.

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