Uganda’s Central Bank Warns Citizens About Crypto Business As Ban On Cryptocurrency Usage Continues

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The BOU remains firm on its decision that no company should provide services linked to cryptocurrency without the permission of the board of directors. This development came only after the state granted property to American musician Akon to develop a smart city, dubbed ‘Akon City,’ in which virtual currencies would be used.

President Yoweri Museveni desired to be the first to reshape Africa’s financial and infrastructure sector by developing cities which would be fueled by digitalization like blockchain tech, artificial intelligence, etc. 

Museveni asked Akon to partake in crypto investment in the country while it remained prohibited. This provided a faint ray of hope for the regulation and acceptance of crypto soon.

BOU Warns Citizens To Be Wary Of Crypto Investment

In April, a letter from Andrew Kawere, the Director of National Payments System in Uganda, stated that the Central Bank had been closely monitoring certain firms that promote the exchange of regular currency to digital currencies, which he feels is unlawful.

The BOU outlawed the usage of digital currencies in the nation on the 2nd of May under Michael Atingi-Ego, the BOU’s Deputy Governor. Atingi-Ego cautioned people not to become involved in cryptocurrency investments because, if things go south, their funds will be lost.

This caution is because cryptocurrencies are currently unregulated in Uganda, as they are in other regions of the globe. He went on to say that the state does not know who the owners of cryptocurrencies are or where they are located. 

As a result, Ugandans should refrain from inventing narratives such as “I own a digital currency and have made a profit on my investment.” Crypto-maniacs were warned not to be duped and to refrain from engaging in cryptocurrency-related activities.

Ugandans Lose Money To Crypto Scammers

In previous statements, the BOU has voiced doubt about the viability of cryptocurrencies such as Bitcoin. While speaking at Kampala’s Blockchain Conference in 2019, the country’s President, Museveni, expressed his support for crypto and blockchain technology. He believes that these technologies will help to overhaul the country’s faltering IT, agricultural, services, and industrial sectors. 

The late Mutebile, ex-Governor of the BOU, even published a warning to the people to notify them of the dangers connected with cryptocurrency. Individuals who ignored the BoU’s caution went on to lose over 10 billion UGX ($2,833,400) to a fictitious cryptocurrency firm named Dunamiscoins Resources Limited.


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