The Bank of Namibia (BON) is on course to complete its study into cryptocurrencies by April 2022, the central bank governor, Johannes Gawaxab recently confirmed. The governor however reiterated that cryptocurrencies are not legal tender as there is currently no provision for digital currency use in the country’s laws.
Although Gawaxab did acknowledge that cryptocurrencies “are not a bad thing,” he still argues that attempts to approve the use of cryptocurrencies in Namibia will not be easy. In a video shared by the country’s state broadcaster, the governor explains why it’s almost impossible to formally introduce cryptocurrencies in that country. He explained:
As Common Monetary Area [CMA] four countries, Lesotho, Swaziland, South Africa and Namibia, we need to collectively look at the cryptocurrencies. We cannot look at [this] just as one country because this going to impact the [entire] CMA currency pool.
The Governor’s Crypto Warning
Namibia, as a member of CMA, is obliged to pursue foreign exchange and monetary policies that are consistent with those of the three other member countries. Therefore, as the Gawaxab indicates, Namibia will only move to incorporate cryptos when the CMA — whose policies are reportedly heavily influenced by the South African Reserve Bank — collectively agrees to this.
However, despite the lack of laws that govern the use of digital currencies, Gawaxab still warned Namibians of the dangers of cryptocurrency trading. Gawaxab’s warning marks the second time the BON has expressed concern over the proliferation of crypto-related scams. As reported by Bitcoin.com News in June 2021, the central bank has previously warned Namibians that it would not entertain complaints by victims of cryptocurrency-related scams.