Growing influence of trading and making exchanges using Cryptocurrency across the globe has coerced Malawi’s Central Bank the Reserve Bank of Malawi (RBM) to open up to discussions on this form of exchange in the country.
Speaking at the bank’s Monetary Policy Conference whose discussions have been dominated by Cryptocurrency, governor Dalitso Kabambe observed that the tried and testing coventional banking is being challenged by technology companies venturing into finance.
“Central banks have overtime developed regulatory frameworks and tools which are being used to regulate the financial sector to guarantee stability of the banking sector and the entire financial system.
“With the coming in of tech companies...which are not regulated by central banks currently, it is important to relook at the frameworks and legislations to suit the new framework and guarantee financial stability,” he said.
Minister of Finance Joseph Mwanamvekha applauded RBM for opening up the space for the financial sector, legal practioners and technology specialist to discuss the future of Cryptocurrency in Malawi.
“Cryptocurrencies are being used as a means of payment or invested assets across the globe and Malawians are not immune to these developments.
“It is imperative for the monetary authorities to remain up to date on the trending developments while supporting the creation of a safe and profitable financial investment opportunities domestically and globally,” said.
Mwanamvekha also urged the meeting to look into the impact of unregulated currency on inflation and how such technologies can also be applied in the management of financial resources.
Earlier this year, RBM cautioned Malawians against blindly adopting the use of Cryptocurrencies, saying though used as a means of payment or medium of exchange, store of values or invested assets online, they are not legal tender in Malawi.
A couple of months ago, reports emerged that dozens of people had been swindled of undisclosed amounts in a Crytpocurrency scam.