Ugandan Government Forms an Expert Task Force to Delve into Crypto Usage
Brian Njuguna Feb 06, 2020 12:00
The Ugandan government has formed a team of experts to research and offer guidance on digital financial operations, such as cryptocurrencies in the wake of recent crypto scams.
The Ugandan government has formed a team of experts to research and offer guidance on digital financial operations, such as cryptocurrencies. This information was revealed by David Bahati, the State Minister of Finance in charge of Planning, as he aired his views on the floor of the Ugandan parliament about the dangers posed by pyramid and ponzi schemes to citizens.
Cryptocurrencies are Ideal Examples of Blockchain
Bahati noted that cryptocurrencies were an ideal example of the benefits rendered by blockchain technology even though they are not under the control of the Ugandan government.
He acknowledged, “Cryptocurrency is a virtual currency in which encryption techniques, based on Blockchain technology, are used to generate units of the virtual currency and verify the transfer of virtual funds. This process typically operates outside the purview of a Central Bank or any other Central Authority.”
He also pinpointed that a cryptocurrency offers its own usage terms and conditions, validity, and authenticity as it is a decentralized peer-to-peer payment network that is propelled by its users with the absence of a central authority.
The minister asserted that blockchain technology was not only used in operating cryptos, but also in various industries, such as logistics, manufacturing, and land registration. The government has high hopes for the technology's applications to revamp the Ugandan economy.
He ascertained, “Blockchain is one of the disruptive technologies that can be harnessed to revolutionize and improve business processes.”
Ugandans Preyed Upon by Crypto Scam
In December 2019, the Ugandan police arrested directors of a cryptocurrency business scam dubbed DunamisCoin that had allegedly embezzled its citizens 10 billion Ugandan shillings, approximately $2.7 million USD.
It is the reason why the minister was keen on addressing Ponzi and pyramid schemes that were taking advantage of the citizens.
He stated, “Ponzi and pyramid schemes involve dishonest investors taking advantage of innocent individuals by encouraging them to invest their savings (money) into ventures - that have no underlying product, with a promise of extraordinary returns.”
The Ugandan government, therefore, seeks to capitalize on blockchain technology by establishing an expert task force.
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