Mogadishu(Mogadishu24)-The Central Bank of Somalia has issued a stern warning to the public against the use of virtual assets such as bitcoins and stable-coins. In an official statement, the bank emphasized that cryptocurrencies are not recognized as legal tender in Somalia and highlighted the absence of licensed financial institutions authorized to engage in such monetary business.
The Central Bank's statement outlined several risks associated with cryptocurrencies, including the lack of legal oversight for these services globally and the absence of licensed agencies in Somalia. It warned that customers could lose all their investments at any time due to the volatile nature of cryptocurrency prices, which are heavily influenced by speculative ideals and lack any form of guarantee.
The statement also pointed out that cryptocurrencies are often used in criminal activities, further underscoring the potential dangers. "The price of this service is based on ideal and heavily floating and it is without guarantee," the bank noted.
In light of these concerns, the Central Bank of Somalia urged the public to exercise extreme caution regarding virtual assets, reinforcing the message that cryptocurrencies are not a secure or stable form of investment.