The African country of Malawi announced that cryptocurrencies are not legal in the country, and that the Reserve Bank of Malawi (RBM) will not accept Bitcoin (BTC) or any other cryptos as legal tender, according to a report by local news agency Nyasa Times on May 27.
Per the report, the RBM also stated that they will not support or condone any activities relating to cryptocurrencies. Malawi’s citizens are warned that the government is not planning to recognize investments in cryptocurrency.
According to a statement from RBM Governor Dalitso Kabambe, all crypto-related activities including purchasing, selling, trading, or making transactions are to be made at the individual’s own risk because the government will not regulate or get involved with this industry.
Furthermore, the governor also issued nationwide warnings about the risks associated with investing in cryptocurrencies, including theft from fraudulent activities and hacking, security breaches, and money laundering.
While Malawi’s government and central bank are clearly opposed to cryptocurrency, Kabambe noted that they are well aware of the potential of blockchain technology and will keep track of global developments surrounding cryptocurrency’s underlying technology.
Malawi is clearly not interested in being a leading innovator in this revolutionary new sector but will perhaps adopt and implement cryptocurrencies and blockchain technology down the road, once it has matured.
Do you think the citizens of Malawi will continue to invest in and trade cryptocurrencies? Would you if you lived there? Let us know what you think in the comment section below.