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Crypto is not legal tender says, Dalitso Kabambe governor of Central Bank of Malawi

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Crypto is not legal tender says, Dalitso Kabambe governor of Central Bank of Malawi
Source: Pixabay

As reported by a Nyasa Times, a local news agency in Malawi reported that, the Central Bank of Malawi or the Reserve Bank of Malawi does not consider cryptocurrency as a legal tender and they do not stand with crypto-related activities.

According to the government body cryptocurrency cannot stand as an alternative of the Malawi kwacha, their native fiat currency of southeastern Africa

As per the statement of Dalitso Kabambe, RBM Governor, they do not entertain any form of investment in cryptocurrencies be it Bitcoin or any other. 

Officials from the institution have made it clear that any form of purchasing, trading or using the digital asset for any payment is to be done at their own risk. The governor also pointers towards the fact that there is no presence of any other legal body that looks into matters like crypto trading or regulating the parties involved in the domain.

Kabambe indicated about the risk that can take place in the crypto-ecosystem, a few of the risks or crimes are money laundering, security breaches, hacks and a lot other fraudulent activities can take place. 

The governor also pointed out that the financial institution is well aware of the blockchain industry and know about its pros and cons as well. They would be keeping track of the industry and will review its stance in case they wish to venture into the domain in the future. 

The South African Reserve Bank had earlier revealed that the local government is in no hurry to put a ban on cryptocurrency trading or any crypto payments.

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Biraajmaan is a full-time journalist at AMBCrypto covering the US market. A graduate in Automobile engineering, he writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.