Regulator of Ethiopia: It is unacceptable to use cryptocurrencies for payments – Bits Media

National Bank of Ethiopia (BE), despite the wait-and-see attitude regarding the legalization of cryptocurrencies, urged citizens not to use cryptocurrencies instead of Ethiopian Birr.

The Central Bank officially announced, which does not recognize cryptocurrencies as a legal method payment. The regulator counts, that Ethiopian citizens should avoid using digital assets, and local currency is the only legal means of payment.

“The national currency of Ethiopia is the Ethiopian birr., and, According to the law, any financial transaction must be paid in birr", - says the official announcement.

The regulator reminded citizens of the country that, that cryptocurrencies are often used for money laundering and called on residents, if they have witnessed cryptocurrency transactions, report illegal transactions to law enforcement authorities.

Like most African countries, Ethiopia has not completely banned the use of cryptocurrencies, and the authorities took a wait-and-see attitude. However, this approach did not previously prevent the Ethiopian government from establishing partnerships with the cryptocurrency company Cardano. The movement towards cryptocurrency technologies on the part of local authorities began back in 2018 year. Four years ago, the Ethiopian government signed a Protocol on Cooperation with a cryptocurrency startup - the developer of Cardano (THERE IS). The agreement guaranteed the introduction of blockchain technology in the agricultural industry. IN
2021 2019, Cardano blockchain developer IOHK also announced cooperation with the Ethiopian government. Its solution IOHK Atala PRISM was planned to be used for digitalization of the education system.