Deputy finance minister Maureen Mbuende warned that for Namibia to allow Bitcoin, trading requires numerous engagements because cryptocurrency trading is a high-risk area requiring legal consideration from government.
Responding to questions in the National Assembly this week, Mbuende noted that Bitcoin trading is a policy matter and a new territory that needs to be thoroughly interrogated.
“On face value, this is high risk area. As it stands, there are no such considerations at government level but Bank of Namibia will do its assessment and take it up with the government, and we will explore,” she explained.
Mbeunde added it will be interesting to engage and debate if Namibian industries are ready for these cryptocurrency trading with the risk factors involved and whether it will be advisable.
“At this stage, it is not a topic on the table – and it is not advisable for people to trade in Bitcoin. There is no sufficient protection in terms of our regulations and laws for trading in Bitcoin,” the deputy minister warned.
Bitcoin, also described as a cryptocurrency, is a completely virtual currency or a digital money.
Bitcoin trading is the act of buying low and selling high.
Unlike investing, which means holding Bitcoin for the long run, trading deals with trying to predict price movements by studying the industry as a whole and price graphs in particular.
Also raising concern on the matter was Popular Democratic Movement leader McHenry Venaani.
“A number of countries has adopted Bitcoin as an official currency in their own territories. What is the Namibian position? Should Namibians or investors trade in Bitcoin,” Venaani inquired.
Musician, entrepreneur and podcaster of #FromTheJump Nikolai Tjongarero in a recent radio interview shared that using Bitcoin with his global customers is one of the fastest and cheapest way of doing his business.
“I wanted to look for alternative means of monetisation because of those things of begging corporates to be your sponsor and never hearing back from them. I tried it and it wasn’t for me, so I decided to see what Bitcoin is all about – and this is the most disruptive technology we have today; it was built to make payments faster and cheaper,” Tjongarero elaborated.
Caption: New territory…Bitcoin trading in Namibia still needs to be discussed on a policy and legislative level given the risks of trading in the cryptocurrency. Photo: Contributed.