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Bank Of Namibia Sticks With Old Laws To Reject Bitcoin Exchanges

Bank Of Namibia Sticks With Old Laws To Reject Bitcoin Exchanges

Bank of Namibia, Central Bank of Namibia, have declared that digital currency exchanges have stood no position in the country under its law which is decades old. The bank has also advised the merchants in the country to not to accept payments for goods and services in bitcoins or any other cryptocurrencies.

The Bank of Namibia cleared in its recent position paper, that the digital currencies hold a minimal threat to its monetary policymaking role and that the virtual assets remain unauthorised under the Exchange Control Act of 1966 in the country.

The Position Paper mentioned:

"In addition to the bank not recognising virtual currencies as legal tender in Namibia, it also does not recognise it to be a foreign currency that can be exchanged for local currency. This is because virtual currencies are neither issued nor guaranteed by a central bank nor backed by any commodity."

The position paper from the central bank also raised concerns about the possible use of the cryptocurrencies for money laundering activities. The bank further cleared itself of not endorsing any event which involves the use of virtual currency due to the lack of a legal system.