Botswana’s central bank reported that local crypto markets remain undeveloped, resulting in minimal risks to the country's financial stability.
Crypto Risks to Botswana's Financial Stability
Despite the minimal risks, the central bank advises regulators to develop oversight frameworks to address future challenges. The Financial Stability Report emphasizes the need for effective oversight in the crypto sector.
Technological Innovations and Financial Threats
The bank indicated that technological innovations in the financial sector might increase risks. However, the current risks are linked to the complexity that facilitates low detection of illicit fund transfers.
Money Laundering and Security
The Bank of Botswana identified the use of digital payment instruments for money laundering and terrorist financing as one of the top national security risks. To mitigate these threats, the bank urges strict compliance with Anti-Money Laundering and Counter Financing of Terrorism regulations.
Botswana's central bank acknowledges that cryptocurrencies present minimal risks to the country's financial stability but emphasizes the importance of developing regulatory measures to prevent future threats.
