Namibia’s government hasn’t accepted Bitcoin or cryptocurrency as a legal currency but they still understand its importance in this modern world and the power it holds among the people. Recently the Bank of Namibia (BON) which is Namibia’s central bank announced that the Virtual Asset (VA) and Virtual Assets Service Provider (VASP) will now come under the countries Fintech Innovations Regulatory Framework program.
A statement was released by BON in September which included the point that
“Despite the fact that digital currencies like Bitcoin (BTC) are still not legally recognized, merchants and dealers may accept payment in this form if the businesses are ready to be a part of such an exchange or trade.”
The central bank specifically mentioned that it is thinking about modifying the applicable laws and regulations systematically in cooperation with proper authorities.”
The bank’s changing position on cryptocurrencies appears to be a sign that the BON is becoming more accepting of them. The central bank stated in the past: – “We do not recognize, support, or promote the people’s ownership, use, or trading of cryptocurrencies.” The bank also informed Namibians that they would have no legal options if they suffered financial losses.”
CBDC Hold ‘Immense Potential Benefit’
Johannes Gawaxab who is the governor of the Bank of Namibia was a critic of cryptocurrency. But with his currency statement, it looks like he’s molding towards cryptocurrency as well as he said: –
“The direction of money is changing right now with the conflict between sovereign and non-sovereign money, as well as between regulated and unregulated money.”
Gawaxab stated that he thinks central bank digital currencies (CBDCs) provide a service that digital currencies established or issued by private parties do not. The BON governor issued a warning. However, noting that his agency will not be hurried into implementing a CBDC despite evaluating and researching its potential.
According to Gawaxab, “CBDCs could contain a great potential value for a more stable, safer, more accessible, and less expensive method of payment than private forms of digital money” if these CBDCs are investigated and deployed with proper care and precaution.
The BON disclosed that they are planning to release a consultation paper on CBDCs in October.
Bitcoin ATM Adoption
Namibia isn’t so behind in the field of cryptocurrency as they already have some Bitcoin Atm established. Hence, where you can convert your Bitcoin into Namibian currency. The very first Bitcoin Atm was established in February 2022 only but it was just a start. Through Bitcoin ATMs, users can directly withdraw cash or fiat currency immediately from their digital wallets. And exchange it for cryptocurrency that is sent directly to their wallets.
The ATMs seem like regular ATMs, but they don’t link to your bank accounts but to your crypto wallets. So you can use them if you have your private wallet or you are a member of a crypto exchange.
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