Recent reports show that the Central Bank of Kenya has taken a risky step by deciding to use Bitcoin as a Reserve currency to solve the country's financial problems.
The Governor of the Central Bank of Kenya, Patrick Njoroge in one of the statements argued that Bitcoin could solve the problem of depreciation of the national currency as given emphasis by the International Monetary Fund (IMF).
The national currency, Shilling has shown a declining trend over the past few decades and has lost almost 50% of its value against the US dollar since 2010. Last year alone, the Kenyan currency has depreciated almost 10% against the US dollar.
The spread of the Covid-19 epidemic in the country has exacerbated the situation. Thus, the institution has proposed a radical proposal to overcome the ongoing problems.
Njoroge believes that Bitcoin can come up with a solution. He also believes that Bitcoin can protect the Shilling currency from forex exchange losses and can lower the national debt.
Bitcoin is now the largest cryptocurrency asset in the world now more valuable than the giant companies Facebook and Tesla. Bitcoin is currently trading at a high of $ 48,119.05 as of 9.20 p.m.
