The government of Uganda has issued a statement saying that Uganda doesn’t recognise any cryptocurrency as legal tender.
The warning was issued in a document by the Minister of Finance and Economic Planning Matia Kasaija, titled ‘Statement On Crypto-currency’. Kasaija warned the public that although there are hundreds of Crypto-currency dealerships disguised as financial institutions, the most renowned ones are Bitcoin and Ethereum.
He warned that since these Crypto-currency dealerships are not regulated by the Bank of Uganda and other government authorities, the people investing money in them by buying online financial assets risk losing their money.
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrencies use decentralized as opposed to centralized digital currency and Central Banking systems. The decentralized control of each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database.