If investing in Bitcoin is among your plans, Central Bank of Kenya (CBK) wants you to know you may lose all your money. Bitcoin is a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of any central bank.
CBK Governor Patrick Njoroge cautioned people against investing in the cryptocurrency now on the lips of thousands of investors across the globe. “If you want to invest in those things, know that it is a bubble of a kind. Be ready to lose all your money. It is dangerous,” warned Dr Njoroge.
The governor, who addressed the Press at CBK headquarters in Nairobi on Wednesday said Kenya’s central bank shares this position with many peers he has been engaging around the world. His warning, a reinforcement to the December 2015 public caution, may be a blow to daring Kenyans who have chosen to flow with the current, risking their money in the little understood online craze.
Bitcoin rose to a high of $17,000 (Sh1.7 million) stirring more interest and speculation but has embarked on a free fall, including losing a third of its value in a day. It is now valued at about $10,000 (Sh1 million). This means an investor who bought one bitcoin on December 7 when the value was at its peak stand to lose Sh700,000 should he or she choose to sell it today.