Virtual assets ‘remain without legal tender status’, but sellers can still accept them as payment – Africa Bitcoin News
The Bank of Namibia recently said it has brought virtual assets and virtual asset service providers under its fintech innovations regulatory framework and plans to amend existing laws and regulations. According to the governor, there is an ongoing “battle between regulated and unregulated money on the one hand and sovereign versus non-sovereign money on the other.”
Amendment of applicable laws
The Bank of Namibia (BON) has said that although cryptocurrencies do not have legal tender status in the country, it has now brought “virtual assets (VA) and virtual asset service providers (VASP) under the Fintech Innovations Regulatory Framework in a phased approach, through its innovation center.” The central bank added that it is also considering changing “current laws and regulations in consultation with other relevant authorities.”
In a recently released statement, the BON also clarified that although privately issued digital currencies are still not legally recognized, sellers and merchants can accept payment in this form provided they are “willing to participate in such an exchange or trade.”
The bank’s new position on digital currencies seems to suggest that BON may be warming up to cryptocurrencies. As reported by Bitcoin.com News, the central bank has previously said that it “does not recognize, support and recommend the possession, use and trading of cryptocurrencies by members of the public.” The bank also warned Namibians that there would be no legal recourse in case they lost money.
CBDCs have ‘enormous potential upside’
However, Johannes Gawaxab, the BON governor and a former critic of cryptocurrencies, is quoted in the statement as acknowledging that the future of the money is now at a critical point. He explained:
The future of money is at a turning point. The battle between regulated and unregulated money on the one hand, and sovereign versus non-sovereign money on the other.
Still, Gawaxab said he believes central bank digital currencies (CBDCs) offer something that privately issued or created digital currencies cannot. The BON governor nevertheless cautioned that his organization, which is also exploring and studying the possibility of rolling out a CBDC, will not rush to do so.
“If CBDCs are explored and implemented with due care and caution, they could have enormous potential benefits for a more stable, safer, more widely available and less expensive means of payment than private forms of digital money,” Gawaxab said.
Meanwhile, the BON revealed that it planned to release a consultation paper on the CBDC in October.
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