The Reserve Bank of Malawi has revealed on a side-lines of the Financial Services Lawyers Conference that it is yet to decide whether Malawi is to start using the cryptocurrency.
The bank said it is to do some consultations with stakeholders before it legalise the system even though some circles are already in use of it.
Speaking at the conference, RBM General Council and Bank Secretary, George Chioza, said as it stands currently, the digital asset is illegal.
He said, : “At the moment, Malawi is really on the border line. We have not said yes or no but we know there are cryptocurrencies. Take caution when you are dealing in those currencies,” Chioza said.
Cryptocurrency is a digital means of exchange that uses strong cryptography for financial transactions which includes: Bitcoin, Litecoin, Ethereum, Zcash, Dach and Ripple.
Adding to the remark, RBM’s Ethics and Compliance Manager, Thabo Chakaka Nyirenda said cryptocurrency is very difficult to monitor transactions and even money laundering due to the complex mathematics which are involved.
“The dilemma is that some commentators have expressed fears that outright banning of digital currencies would force users to go underground where they will continue to operate without anti-money laundering oversight hence, the need to counterbalance the risks and the benefits.” Said Thabo.
Cryptocurrency is legal in countries like: Zimbabwe, South Africa, Namibia, Nigeria, United States and Costa Rica among others.
