Cryptocurrencies are operating illegally – Minister of Finance, Planning and Economic Development, Matia Kasaija warns Ugandans about the outcomes
Minister of Finance, Planning and Economic Development, Matia Kasaija has warned against the use of Cryptocurrencies indicating that the government of Uganda doesn’t recognize any as a legal tender.
The Minister who was addressing a Press Conference at the Uganda Media Centre in Kampala on 30th September 2019 said the government has not licensed any organization to sell cryptocurrencies and to facilitate the trade or exchange of cryptocurrencies.
“Unlike other owners of financial assets who are protected by the government of Uganda regulation, holders of cryptocurrencies in Uganda do not enjoy any consumer protection should they lose the value assigned to their holdings of cryptocurrencies,” said Kasaija.
According to Kasaija, the holders of cryptocurrencies in Uganda do not enjoy any consumer protection should they lose the value assigned to their holdings of crypto-currencies.
“Most cryptocurrencies such as Bitcoin and Ethereum are not backed by assets or government guarantees, therefore holders of these cryptos- currencies are fully exposed to the risk of loss,” said the Minister before adding that Ugandans should not come to government crying if anything bad happens as a result of the currency.
“The public is advised to apprise themselves of the risks associated with cyber-currencies, and exercise caution before they make transactions involving such products,” Kasaija added.
What is Cryptocurrency
A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.
This is a digital currency that is majorly used online for different transactions. Cryptocurrency is designed as a medium of exchange for purchasing, selling and verifying the transfer of assets.
Some of the examples of cryptocurrencies include Bitcoin, blockchain, anonymous and decentralised among others.
Most of the cryptocurrencies are decentralized and this makes it hard for it to be forged or counterfeited.
It should be noted that cryptocurrency is not issued by a central authority and its transactions cannot be interfered with by the government.
Cryptocurrencies use decentralized control as opposed to centralized digital currency and central banking systems.
The decentralized control of each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database.
Bitcoin, first released as open-source software in 2009, is generally considered the first decentralized cryptocurrency.
Since the release of bitcoin, over 4,000 altcoins (alternative variants of bitcoin, or other cryptocurrencies) have been created.
By John Dalton Kigozi