National Bank of Ethiopia warns Residents about crypto says Bitcoin still illegal as a Payment Method

By: Henry Felix

National Bank of Ethiopia warns Residents about crypto says Bitcoin still illegal as a Payment Method

June 9, 2022 9:56 AM

Central Bank of Ethiopia in a recent report has distant its self from Bitcoin (BTC) calling it an illegal means of payment in the country in another fresh warning to residents.

 

The National Bank of Ethiopia (NBE) in another warning says it doesn't see cryptocurrencies as a legal method of payment and that Ethiopians must avoid using them.

 

The Central Bank insists that Ethiopia's local currency 'Birr' is the only legal means of settling transactions in the north-eastern African country.

 

National Bank of Ethiopia calls Crypto transactions illegal


According to a report, the Ethiopian central bank issued a warning to residents against engaging in “illegal” cryptocurrency transactions. The report also states that the central bank still does not recognize cryptocurrencies like bitcoin as a legitimate method of payment.

 

In a recent report by the state-affiliated media outlet Fanabc refers to a statement from the National Bank of Ethiopia (NBE) which warned the Ethiopians that the birr currency remains the country only legal tender.

 

The National Bank of Ethiopia (NBE) said: “Ethiopia’s national currency is the Ethiopian Birr, with any financial transaction in Ethiopia to be paid in our local currency Birrs, according to the law.” 


Ethiopians Urged to Report Crypto Transactions


Ethiopia has not completely banned the use of cryptocurrencies like most African countries, but has since adopted a wait-and-see approach on how the crypto industry unfolds. However, this has not deterred the Ethiopian government from establishing a working relationship with Cardano (ADA).

 

The collaboration with Cardano as well as the government’s apparent warming to blockchain technology has not stopped the NBE from going dark on cryptocurrencies claiming there are primarily used for money laundering. The National Bank of Ethiopia urged residents to report such transactions if they come across them.