Decentralized Cryptocurrencies Are Risky Says The Central Bank of UgandaKehinde LAWAL
The deputy governor of the Bank of Uganda has warned the public about the limited protections offered them when they invest in unregulated cryptocurrencies.
English-language Ugandan daily New Vision reports on June 28 that the bank’s deputy governor — Dr. Louis Kaskende — made his remarks during a Town Hall meeting in the city of Masaka, which was devoted to educating the public about the institution’s activities and role.
Despite bitcoin being designed, in particular, as a politically-neutral money, Kaskende reportedly underscored the risks of crypto trading and adoption, stating that:
“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.”
In his remarks, the governor clarified that the central bank does not have a comprehensive oversight of all financial services firms and institutions, and that its supervision typically spans commercial banks, credit institutions, foreign exchange bureaus and money remittance service providers.
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