Ethiopian Central Bank Urges Residents to Stop Engaging in Crypto Transactions

The  Ethiopian National Bank (NBE) has said  cryptocurrencies are not a valid form of payment and that residents should avoid using them. The bank claims that only the local birr money can be used to settle transactions in Ethiopia.

According to a report, the Ethiopian central bank has advised citizens against engaging in “illegal” cryptocurrency transactions. The central bank, according to the report, still does not recognize cryptocurrencies such as bitcoin as a payment method.

The state-owned media source Fanabc cites a statement from the National Bank of Ethiopia (NBE) reminding Ethiopians that the birr currency is still the country’s only legal tender in its story.

“Ethiopia’s national currency is the Ethiopian Birr, with any financial transaction in Ethiopia to be paid in Birrs, according to the law,” the central bank reportedly said.

Ethiopia, like many of its African neighbours, has not outright prohibited the usage of cryptocurrencies, opting instead for a wait-and-see strategy. The Ethiopian government, on the other hand, has not been deterred from building a working partnership with Cardano as a result of this strategy.

The NBE has continued to maintain that cryptocurrencies are largely used for money laundering operations despite Cardano’s adoption and the government’s apparent warming to blockchain technology.

Residents were also advised to report similar transactions if they came across them, according to the central bank.