The Bank of Namibia (BON) is working on finishing a study into crypto by April 2022, according to Johannes Gawaxab, its governor. Still, he has reminded people that crypto is not legal tender since, for now, there is no provision for digital currency use in the laws of the country.
The governor mentioned that cryptos “are not a bad thing,” but pointed out the fact that trying to approve the use of crypto in the country is a difficult task:
“As Common Monetary Area [CMA] four countries, Lesotho, Swaziland, South Africa, and Namibia, we need to collectively look at the cryptocurrencies. We cannot look at [this] just as one country because this going to impact the [entire] CMA currency pool.”
Since Namibia is part of the CMA, any foreign exchange or monetary policies that are put in place need to be consistent with those that are found in the other member countries of the CMA.
As a result, Gawaxab has declared that Namibia can incorporate crypto only if the CMA agrees to do it. CMA is heavily influenced by the South African Reserve Bank.
Gawaxab also issued a warning regarding crypto trading.