Mu­sev­eni, bank boss dis­agree on cryp­tocur­ren­cies

Pres­i­dent urges Bank of Uganda gov­er­nor to em­brace emerg­ing tech­nolo­gies

Business Daily (Kenya) - - REGIONAL BUSINESS - Martin Luther Oketch in Kam­pala

Pres­i­dent Yow­eri Mu­sev­eni and Bank of Uganda Gov­er­nor Em­manuel Tu­musi­ime-mute­bile have dis­agreed on whether the coun­try should adopt the use of cryp­tocur­rency in run­ning fi­nan­cial trans­ac­tions.

Cryp­tocur­rency is a dig­i­tal or vir­tual cur­rency that uses cryp­tog­ra­phy for security. While giv­ing a key­note ad­dress dur­ing the Africa Blockchain Con­fer­ence at Kam­pala Ser­ena Ho­tel, Prof Mute­bile said the emer­gence of cryp­tocur­ren­cies such as bit­coin has made cen­tral banks to re­visit two fun­da­men­tal ques­tions: what func­tions of a cur­rency are and what the re­quire­ments for a cred­i­ble cur­rency are.

He warned that no cryp­tocur­rency can match a well-man­aged na­tional or re­gional cur­rency.

“Cryp­tocur­ren­cies do not have the priv­i­leges of a le­gal ten­der and are not backed by a cen­tral bank which en­sures that sup­ply of cur­rency is al­ways ad­e­quate to meet the de­mand,” he said.

How­ever, Mr Mu­sev­eni told Prof Mute­bile to em­brace emerg­ing tech­nolo­gies in the fi­nan­cial and bank­ing sec­tor.

Although he said Prof Mute­bile was not op­posed to blockchain tech­nol­ogy but wanted ex­perts at the con­fer­ence to ex­plore its po­ten­tial ben­e­fits to the pub­lic, he told the gov­er­nor not to be dis­mis­sive of the new tech­nol­ogy.

“I would en­cour­age the gov­er­nor not to be more in­quis­i­tive and not to be dog­matic. I con­grat­u­late him for re­mind­ing me of my eco­nom­ics of 1966 that money is a store of value, a medium of ex­change and a unit of ac­count,” Mr Mu­sev­eni said.

“When we get into new tech­nol­ogy, some­times we tend to get lost and we lose touch with tech­nol­ogy that comes. Busi­ness is about the sup­ply of goods and ser­vices to meet the demands of the peo­ple. They de­ter­mine the sources of goods and ser­vices to be traded,” he said.

--FILE

TECH­NOL­OGY Bit­coins.

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