The Bank of Namibia (BON) has said that while cryptocurrencies have no legal tender status in the country, it has now brought “virtual assets (VA) and virtual assets service providers” (VASP) under its Fintech Innovations Regulatory Framework.
According to the statement, despite the fact that privately issued digital currencies are still not officially recognised as legal tender, traders and merchants are still permitted to take payment in this manner so long as they are willing to participate in such an exchange or trade.
The central bank has previously stated that it does not recognise, support and advocate the possession, use and trading of cryptocurrencies by members of the public. The bank also cautioned Namibians that if they suffered losses, they would have no legal recourse.
Johannes Gawaxab, the BON governor stated, “The future of money is at an inflection point. The battle between regulated and unregulated money on the one hand, and sovereign versus non-sovereign money on the other.”
However, Gawaxab asserted that he thinks central bank digital currencies (CBDCs) provide something that digital currencies that are issued or developed privately do not.
The BON governor issued a warning, however, noting that his agency will not be hurried into implementing a CBDC despite evaluating and researching its viability.
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.”
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