New program will rationalize salaries of public servants in Mozambique - IMF
Voa (File photo) / Banco de Moçambqiue headquarters in Maputo
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.
Leave a Reply
1 Comment on "Mozambique’s central bank warns against using Bitcoin"
You must be logged in to post a comment.
You must be logged in to post a comment.
Well, Though Cryptocurrencies are in fact without intrinsic value,
that doesn’t mean they have no value. Perhaps the Technology behind the cryptocurrency system is something so amazing that the establishment is starting to gnaw some nails.
Related to Criminal activities, holala….the biggest and strongest supporters of Money laundry and other criminal activities such as the corruption of politicians all over the world, inclusive Africans…. ARE THE BANKS.
Did the Bank of Mozambique knew about the $2 bn in secret debt, or was it a surprise. It is a pity that the Mozambicans are not able to go deep on some matters, efficiently.