Borkena
Toronto – The National Bank of Ethiopia on Friday announced it has banned all birr-paired Peer-to-Peer Crypto Currency transactions. It deemed them “illegal.” A room for exception is left ; when there is authorization from the National Bank of Ethiopia.
“Under the current regulatory framework, the use of birr-paired P2P arrangements on trading platforms, exchanges or similar services and products is not permitted unless explicitly authorized by the National Bank of Ethiopia,” it said in a statement it released.
The Bank noted that interest in digital and virtual assets is still growing the world over but it advised the public to make an informed decision. “These markets are often characterized by significant volatility, exposure to foreign exchange price manipulation, fraud and scams, operational risks, and the absence of key safeguards such as Anti-Money Laundering and Combating the Financing of Terrorism protections commonly found in regulated financial systems,” it said.
It shared the observation that P2P Platforms and Crypto exchanges experienced challenges at the international level as well.
Finally, it said that it is working on a comprehensive regulatory framework to ensure “safe and orderly participation in emerging digital asset technologies.” Furthermore, it said that it is consulting with global peer regulators and local stakeholders as part of developing it.
The National Bank of Ethiopia has been introducing a number of regulatory rules in recent months in what appears to be measures to implement the macro-economic reform the ruling party introduced in July 2024 including the devaluation of Ethiopian Birr by about 200 percent. The governor of the bank, Eyob Tekalegne, this week appeared in a televised election debate representing the ruling prosperity party. He argued that the economy and the financial system is doing well despite widespread public sentiment that the cost of living has become unbearable.
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