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The Bank of Mozambique, in its capacity as supervisor of the national financial system, has warned of the risks of using Bitcoin, the virtual currency.
“The currency is becoming popular because of the ease with which it allows the transaction of large amounts [of money] for the acquisition of goods and services, the transfer of funds, and investments and payments,” the bank statement says.
The central bank however goes on to warn that, although there are benefits, there are also risks that need to be safeguarded against because, given its nature, the currency may be linked to criminal activities such as money laundering, terrorist financing and drug trafficking, for example. The note goes on to say that Bitcoin should not be confused with electronic money (emoney).
The central bank therefore warns that it does not regulate, supervise or monitor activities and transactions carried out using Bitcoin, and is therefore not liable for any effects resulting from transactions related to it, as the crypto-currency has no legal standing and is not issued by the national monetary authority.
Crypto-currencies, according to the Bank of Mozambique communiqué, favour criminal activities because they facilitate anonymous transactions, but offer no security and are highly vulnerable to fraud and other crimes perpetrated by means of information and communication technologies.Source: Folha de Maputo
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