The central bank says that Bitcoin is a good payment option for the future
- The Central Bank of Namibia announces the inclusion of digital assets and virtual asset service providers (VASPs) in its FIR framework.
- Namibia’s central bank governor, a former skeptic of cryptocurrencies, says the future of money is at an “inflection point”.
It is well known that cryptocurrencies do not have a legal tender status in Namibia. But the country’s central bank (Namibia’s bank, BON) has revealed that it has included virtual asset service providers (VASPs) and digital assets in its Fintech Innovations Regulatory (FIR) framework. The bank added that this incorporation would be done in groups.
Last month, the BON released a statement stressing that the government has yet to recognize cryptocurrencies such as Bitcoin as legal. However, the report also said that retailers and merchants can accept crypto payments as long as they don’t mind transacting with cryptocurrencies. The statement also said that the central bank is in consultation with other necessary authorities on how to make appropriate changes to relevant laws and regulations regarding crypto-assets.
The bank’s new announcement indicates that Namibian financial regulators are gradually embracing cryptocurrencies. Earlier, the apex bank said it will not support, recommend or recognize crypto ownership, use or transaction by any of its citizens. The bank added that any Namibian who loses money due to crypto ownership or trading could not take any legal action to recover the loss.
The future of money is at a crucial juncture
Following the announcement, BON Governor Johannes Gawaxab stated that the future of money is now at a crucial time. He explained that the future of money is now a battle between sovereign and non-sovereign money on the one hand and regulated versus unregulated money on the other. Gawaxab further argued that central banks’ digital currencies have more advantages and are more beneficial to citizens than privately issued or developed digital currencies.
But the BON governor added that the apex bank, which is responsible for analyzing and investigating the viability of the country’s CBDC, is in no rush to launch it. In a recent interview, Gawaxab said that proper exploration and implementation of CBDCs has major benefits.
One such advantage is that it is a safer, cheaper, more stable and more widely available payment method than privately issued digital money. The BON has revealed that it will release its CBDC consultation document before the end of this month. Meanwhile, Binance founder and CEO Changpeng Zhao (CZ) referred to the BON announcement with the words “slowly but surely.” According to him, it is only a matter of time before Bitcoin as a means of payment is accepted globally.
Slowly but surely.
» Namibia’s central bank says Bitcoin can be accepted as payment
— CZ 🔶 Binance (@cz_binance) 6 October 2022
CZ is one of many Bitcoin enthusiasts advocating for global Bitcoin adoption. However, Tesla’s sale of 75 percent of its BTC holdings in Q2 2022 has led to new uncertainty regarding Bitcoin adoption, especially by governments and entities. It also opens up fresh criticism regarding the “digital gold” thesis proposed by Bitcoin enthusiasts. Therefore, it is likely that Bitcoin adoption as a global store of value may remain in its infancy for the foreseeable future.
