The Reserve Bank of Malawi (RBM) put out a statement that stresses that cryptocurrencies are not legal tender in Malawi.

The central bank released the statement after noting an increased public interest in cryptocurrency, through the growing number of enquiries on the subject received from the general public and other stakeholders, to which RBM responded “Reserve Bank of Malawi wishes to advise the general public that cryptocurrencies are not legal tender in Malawi. The RBM is however aware that they are used as a means of payment or medium of exchange, a store of value or invested assets online.” said the RBM Governor Dalitso Kabambe.

As cryptocurrency its trying to grow its penetration in Africa, Malawi has not ignored the topic, as various citizens claimed to have invested in the virtual currencies such as Litecoin, Ethereum, Zcash, Dach, Ripple, among numerous other forms, not forgetting the popular Bitcoin.

The central bank’s governor also outlined risks that are associated with the use of cryptocurrencies and similar online trading schemes, which are often connected to money laundering, vulnerability to cybercrimes, hacking and other fraudulent activities. The statement reads “…other potential risks to users would emanate from loss or theft through a security breach, user error or a technological failure. RBM urges any individual or entities currently investing or intending to invest in cryptocurrencies and related products/assets to exercise restraint or caution due to the aforementioned risks and unregulated status of such online schemes.”

Overall, RBM emphasizes that no cryptocurrency exchange known to have been registered in Malawi, notwithstanding any trading by its citizenry or local entities on the foreign-based exchanges, meaning that it would be difficult for RBM to pursue or take charge of perpetrators in the event of fraud or other forms of malpractices that may be encountered cryptocurrency enthusiasts in Malawi.