CRYPTOCURRENCIES ARE RISKY: BOU WARNS PUBLIC

The deputy governor of the Bank of Uganda has warned the public about the limited protections offered them when they invest in unregulated cryptocurrencies. Remarkably, the bank’s deputy governor Dr Louis Kaskende made his remarks during a town hall meeting in Masaka basing on educating the public about the institution’s activities and role. Dr Louis Kasekende also said there were no regulations on the use of online cryptocurrency and it is risky to start using them.  “Let me state clearly that the online cryptocurrency businesses are not regulated at the moment and therefore carry a significant risk of loss of savings, with no recourse to protection or insurance by the government, like is the case with regulated financial institutions such as commercial banks,” Kasekende said. This comes after Facebook recently announced the (Libra) a new cryptocurrency targeting its two billion users around the world, which the company intends to launch next year. Kasekende clarified that Bank of Uganda does not regulate or supervise all financial institutions. He said Bank of Uganda supervises commercial banks, credit Institutions and the micro-deposit taking institutions and the foreign exchange bureaus and money remittance services. He further noted that there was public concern relating to the Gross Domestic Product (GDP) growth figures.  “The compilation and publication of official national statistics like GDP is the core responsibility of the Uganda Bureau of Statistics. These GDP figures to an extent reveal the economic activities that are fastest growing or generating income and where you should look to participate and take advantage of the opportunities therein to earn a decent living,” Kaskende said.  “GDP information reveals why some sections of the population might not be experiencing higher incomes relative to others. Such information can be deduced from sector breakdown of the GDP and other critical statistics like population growth rates and the employment patterns,” he explained. He asserted that the construction of the Masaka currency centre was complete and is to be opened by President Yoweri Museveni soon. “This magnificent new currency centre shall have the requisite capacity to serve the increasing and future demands of this economic hub. I believe, the new currency centre building adds to the skyline of this historic town and is befitting of a modern city, as Masaka Municipality aspires and duly deserves,” he said.

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