With the acceptance of Bit coin in Kenya what will this mean for our young nation’s financial sector?
Bit coin is a highly volatile currency within a few days its value can increase in leaps and bounds. It is a coin that is not regulated by any financial institution in the world as its creator in 2009 Satoshi Nakamoto an alias , he said he did this in order to take away power from corrupt leaders and politicians and give it back to the people, and this he has certainly managed to do.
Bit coin has come a long way since 2009 and Kenyans only starting to interact with this currency in 2013 but as time passes its popularity has kept on increasing to the point people have formed groups and associations .Trying to demystify the potential of this currency for their own benefit.
In 2009 when launched its value was 0, in 2010 1 BTC was valued at39ksh today 1 BTC is going for about 1,200,000 .Therefore for early adopters of this coin they are now multi millionaires , and all they had to do was take a leap of faith.
The governor of central Bank warned citizens not to join this fad, sighting it to be a pyramid scheme and when it falls people will have no legal redress. This is quite an accurate statement, but if the average citizen took a calculated risk and purchased this coin in a few years won’t their quality of life have improved?
Also since the central bank cannot regulate it .It could mean that banks will no longer make abnormal profits as they do, as people will have financial security. People are of the notion that since it’s not regulated its value will suddenly fall. What we don’t know is that this coin has a limit of 21 million coins and once those coins are mined no more coins will ever be produced. So far only about half of those are in circulation.
In a world with a population of about seven billion people, I think we should not be worried about this coin losing its value. Instead we should think about how as a nation we can hold as many coins as possible , thereby increasing our bargaining power in the world out there.
A time is coming when this coin will be accepted world –wide as legal tender. The following is a list of some of the mega co-operations already accepting this coin in exchange for goods.
WordPress.com – An online company that allows user to create their own free blogs
Microsoft – Users can buy content with Bit coin on Xbox and Windows store
Virgin Galactic – Richard Branson Company that includes Virgin Mobile and Virgin Airline
If financial sector fell it could lead to massive job losses and per herpes this is one of the major concerns of CBK. But this is an inevitable revolution and we should not burry our heads in the sand. Instead we should invest in understanding how these coins are created, distributed, and used. Set –up a team to create our own crypto- currency. That way we can be ahead of the curve and contingency plans put in place for the smooth transition from paper money to digital currency.