The Reserve Bank of Malawi (RBM) stated that cryptocurrencies are not legal tender in Malawi, adding that they do not represent a substitute to the Malawi kwacha (MWK), local fiat currency. The bank went on to warn citizens that the government does not plan to recognize investments in cryptocurrencies, according to a statement from RBM Governor Dalitso Kabambe on Monday.
Kabambe reportedly claims that the citizens have been advised by the bank that all crypto-related activities such as purchasing, trading or using cryptocurrency as payment will be at an individual’s own risk. He further stressed that no institution in the government oversees crypto trading or regulates the involved parties.
The governor also outlined the major risks associated with crypto investments such as money laundering and security breaches including hacks and fraudulent activities. He pointed out another risk factor, that no crypto exchange has been registered in the country.
As per the report, after the RBM’s official statement country’s residents have shown a growing interest on the matter, that includes a rise in the number of crypto-related inquiries to the bank.
Like many other countries, while hating on cryptocurrency, the nations recognize the potential of blockchain and its use cases in a number of industries. Kabambe added on the matter that the bank will be tracking global developments regarding the technology and will review their subsequent regulatory stance over the matter, if necessary.