In a bid to tread where not so many others have, Botswana’s central bank has classified cryptocurrency investments as low risk, albeit with a caveat to regulations aimed at stemming future systemic threats.
In its latest *Financial Stability Report* released recently, the Bank of Botswana indicated that while the local crypto markets are still immature, the introduction of digital assets into traditional finance can be risky if measures are not taken urgently.
It is a cautious yet forward looking report for an African nation that remains on the lookout to blockchain and digital finance. In the United States, President elect Donald Trump has named a series of high profile appointees to oversee his administration’s economic and digital asset policy agenda.
“Domestically, risks emanating from crypto assets are minimal but ongoing misconduct in the segment presents regulatory concerns. Regulators therefore need to develop effective oversight frameworks for the sector.”
Botswana Central Bank Calls for Crypto Regulation
Former college football player and North Carolina 2022 congressional race Republican aspirant Bo Hines recently moved into a new role, taking over as executive director of the new “Presidential Council of Advisers for Digital Assets,” or the “Crypto Council.”
In a statement released, the council said it sought to support innovation in the cryptocurrency space under the guiding hand of David Sacks, Trump’s crypto and artificial intelligence czar. Trump posted on his Truth platform that ‘Bo will be working closely with David to make sure this industry genuinely flourishes and we’re going to supply leaders with the tools and also help the development of technology to completely remake this phenomenon.’
Trump also selected former Andreessen Horowitz partner Sriram Krishnan as senior AI policy adviser, joining former Hines. Stephen Miran was appointed chairman of the Council of Economic Advisors rounding out Trump’s economic team.
A former senior adviser to the U.S. Treasury Department, Miran was pledging to champion deregulation to foster innovation. Miran’s nomination was met with support from the crypto community, all the more so for his pro-innovation, and open approach on blockchain technology.
“I am beyond honored that President Trump has chosen me to lead his Council of Economic Advisers. I look forward to working to help implement the President’s policy agenda to create a booming, noninflationary economy that brings prosperity to all Americans!”
These developments reflect the growing recognition among global leaders that supporting innovation presents a balancing act that is both required and necessary to promote financial stability in the advancement of how we conduct this world’s business.
