In the last article, we have mentioned that the next step in crypto adoption is the governments and states buying Bitcoin and making it reserve currency. After so much good fundamental news in recent days, it did not take long, and we have Kenya and Nigeria supporting the idea of Bitcoin becoming the reserve currency.
According to a Daily News Arena report, the Central Bank of Kenya said it has decided to use Bitcoin as a reserve currency to solve the country’s economic problems.
After the Government of Nigeria also declared on Twitter yesterday that Bitcoin could soon replace the Naira, Patrick Njoroge, Governor of the Central Bank of Kenya, also expressed his support for Bitcoin.
The decision to use BTC as a reserve currency would have already been made considering the speed of transactions and the fact that exchanging the Naira for other foreign money is not convenient.
These are the words of Njoroge:
“OUR DECISION TO SHIFT TO BITCOIN IS BOTH TACTICAL AND LOGICAL. OUR CURRENCY HAS ALWAYS BEEN THE PUNCHING BAG FOR THE INTERNATIONAL MONETARY FUND 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”.
Bitcoin in Kenya
In September 2020, Kenya’s Young Entrepreneurs Network (YEN) also announced that it had developed a new stablecoin called YENTS based on the Kenyan shilling.
It is worth mentioning that Bitcoin has already been widely used in Kenya for years. Overall, crypto transactions in Africa have risen to a value of 55%, showing that cryptocurrencies are widely used on the continent.
Essentially, this is a similar phenomenon to Venezuela: the countries with the most significant economic difficulties and where inflation is soaring prefer to use crypto rather than the local currency.
Let’s wait for the further development in Kenya and which country will be the next.