Bank of Uganda warns public on online cryptocurrency

Bank of Uganda warns public on online cryptocurrency

Dr. Louis Kasekende the deputy Governor at the Bank of Uganda has said there were no regulations on the use of online crypto currency and it is risky to start using them.

This was during a Town Hall meeting held at Masaka to engage the public on activities of the central bank. Cryptocurrency is a form of digital money; it is associated with the Internet using codes for purchases, transfers, and money online. The first cryptocurrency was bitcoin which was created in 2009, since then several of them have been created. 

“Let me state clearly that the online cryptocurrency businesses are not regulated at the moment and therefore carry a significant risk of loss of savings, with no recourse to protection or insurance by government, like is the case with regulated financial institutions such as commercial banks,” He stated.

Kasekende clarified that Bank of Uganda does not regulate or supervise all financial institutions. He said Bank of Uganda supervises commercial banks, credit Institutions and the micro-deposit taking institutions and the foreign exchange bureaus and money remittance services.

This week, three senior officials at the Bank of Uganda — including the director-in-charge of currency — were charged with alleged abuse of office and corruption in connection with a consignment of Ugandan currency from France.

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