‘Malawi cautious on cryptocurrency’
Malawi is still hesitant to adopt cryptocurrency as a legal tender amid some entities pushing for it.
In the past months, debate has ensued on whether the country should adopt the cryptocurrency.
Entities like the ICT Association of Malawi (Ictam) have been pushing the Reserve Bank of Malawi to regulate the use of cryptocurrency in the country.
Speaking in an interview, Ictam President Bram Fudzulani said the status qou has not stopped many in the country from accessing and trading with the digital currencies.
“We might want to engage in civic education but technology will not wait for us. That is why there are a lot of Malawians investing in bit coin, even though the authorities are saying that we are not ready and regulations are not in place yet,” Fudzulani said.
He said the technology behind cryptocurrency itself can benefit the country in areas of land management systems and the systems responsible for the disbursing of funds in humanitarian efforts.
Critics, however, have often faulted this form of currency in areas of investment because of its volatility, owing to the absence of a central regulatory authority.
Cryptocurrency expert Wiza Jalakasi said that the digital currency would continue to be unstable for some time.
“When it comes to bitcoin specifically, it’s the first ever implementation of the crypto currency that was put in place, particularly right now the primary use is speculative investment.”
“But the future of cryptocurrency may not be Bitcoin as there are already other stable coins gaining popularity today that people can invest in if they feel that is a safer bet for their money,” Jalakasi said.
He added that Malawians using cryptocurrency should be mindful of its risks.