Central Bank: No plans to adopt cryptocurrency for now

THE Central Bank is not currently interested in cryptocurrency. Its deputy governor Dr Dorian Noel said this country does not have the legislative framework or technological infrastructure to consider it.

He was responding to questions from the public during the bank’s presentation of its 2021/2022-2025/2026 strategic plan on Tuesday morning. It was held virtually.

Cryptocurrency is an electronic, decentralised currency system that puts trust in consumers as opposed to a central authority. The most widely known form of cryptocurrency is bitcoin, but there are several others including litecoin, cardano and ethereum.

Recently, El Salvador became the first country to make bitcoin, specifically, legal tender.

Someone asked, “Does the Central Bank intend to include cryptocurrencies like Bitcoin on the balance sheet to assist with the current remittance challenges we face similar to the way El Salvador is embracing bitcoin?”

Noel said the bank has “taken note of recent developments in the international environment” related to cryptocurrency but “At this time, the answer is no.

“The reason being is that, from our perspective, we have to be very prudent in how we approach this because the framework – the legislative framework and the technological infrastructure as it stands in the country cannot support two important aspects of the Central Bank – one, ensuring stability of the financial system, two – ensuring the integrity of the financial system.”

He said there are underlying concerns about safeguards in place for consumers when it comes to cryptocurrency.

“There are other ways to get remittances in the future.

“If, unfortunately, there are those who receive remittances by means of cryptocurrency or Bitcoin, there’s not the necessary infrastructure at this time to ensure those things work effectively and secure in our financial system.”