Namibian Central Bank: Virtual Assets ‘Remain Without Legal Tender Status’ but Merchants Can Still Accept Them as Payment

The Bank of Namibia precocious said it has brought virtual assets and virtual plus work providers nether its fintech innovations regulatory framework, and that it plans to amend applicable laws and regulations. According to the cardinal bank’s governor, determination is an ongoing “battle betwixt regulated and unregulated wealth connected the 1 manus and sovereign versus non-sovereign wealth connected the other.”

Amending Applicable Laws

The Bank of Namibia (BON) has said that portion cryptocurrencies person nary ineligible tender presumption successful the country, it has present brought “virtual assets (VA) and virtual assets work providers (VASP) nether its Fintech Innovations Regulatory Framework successful a phased approach, done its innovation hub.” The cardinal slope added it is besides considering amending “applicable laws and regulations diligently successful consultation with different applicable authorities.”

In a precocious issued statement, the BON besides clarified that adjacent though privately issued integer currencies are inactive not legally recognized, merchants and traders tin judge outgo successful this signifier provided they are “willing to enactment successful specified an speech oregon trade.”

The bank’s caller presumption connected integer currencies appears to suggest the BON whitethorn beryllium warming up to cryptocurrencies. As reported by Bitcoin.com News, the cardinal slope has successful the past said it did “not recognise, enactment and urge the possession, utilisation and trading of cryptocurrencies by members of the public.” The slope besides warned Namibians determination would beryllium nary ineligible recourse successful the lawsuit they mislaid money.

CBDCs Hold ‘Immense Potential Benefit’

However, Johannes Gawaxab, the BON politician and a past professional of cryptocurrencies, is quoted successful the connection acknowledging the aboriginal of wealth is present a captious point. He explained:

The aboriginal of wealth is astatine an inflection point. The conflict betwixt regulated and unregulated wealth connected the 1 hand, and sovereign versus non-sovereign wealth connected the other.

Still, Gawaxab said helium believes cardinal slope integer currencies (CBDCs) connection thing which privately issued oregon created integer currencies cannot. The BON politician nevertheless cautioned that his organization, which is besides exploring and studying the feasibility of rolling retired a CBDC, volition not beryllium rushed into doing this.

“If CBDCs are explored and implemented with owed attraction and caution, they could clasp immense imaginable payment for a much stable, safer, much wide available, and little costly means of outgo than backstage forms of integer money,” said Gawaxab.

Meanwhile, the BON revealed that it planned to merchandise a consultation insubstantial connected CBDCs successful October.

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