Ethiopia to Introduce Guidelines for Cryptocurrency Transactions, Following NBE’s New Proclamation

The National Bank of Ethiopia (NBE) is poised to introduce regulations concerning cryptocurrencies and digital assets following today’s approval of the National Bank of Ethiopia Amendment Proclamation. This significant step reflects Ethiopia’s response to the rapid global developments in central banking and digital finance.

The amended proclamation includes a provision that allows the NBE to regulate the use of crypto assets and digital money. While the use of cryptocurrencies for payments is prohibited under the new regulations, the NBE is authorized to issue future guidelines on digital assets in line with global trends. Mamo Mihretu, Governor of the National Bank of Ethiopia, underscored the importance of observing changes in global monetary policy and digital currency development.

However, the draft bill has faced scrutiny. During the parliamentary session, members raised concerns over the vague provisions regarding cryptocurrency regulation, particularly around safeguarding digital transactions. One parliament member pointed out the ambiguity surrounding transaction protections, especially given the anonymous nature of cryptocurrency exchanges.

In response, Governor Mamo assured lawmakers that the NBE would not immediately authorize the use of cryptocurrencies as legal tender. Instead, the central bank would continue monitoring global trends and may issue specific guidelines in the future to regulate crypto assets more effectively.

Mamo also highlighted Ethiopia’s growing role in crypto mining, which has become a significant sector due to the country’s expanding power supply and commitment to green energy. Although cryptocurrency mining has flourished in Ethiopia, the governor emphasized that the NBE’s focus remains on ensuring that the use of cryptocurrencies as a form of payment is tightly controlled until a more comprehensive regulatory framework is established.