The statement released by the Bank of Namibia reads, “The Bank also announced its updated position on Virtual Assets (VAs) and Virtual Assets Service Providers (VASPs)."
The Bank of Namibia (BON) has allowed citizens of the Republic of Namibia to make payments using crypto. The news came after last month’s Thought Leadership Event where representatives from several nations' Central Banks highlighted their views on crypto.
According to its statement, the BON has updated its policy on digital assets. It added Bitcoin and other cryptocurrencies to its Fintech Innovations Regulatory Framework.
The bank also plans to change the regulatory laws on virtual assets after discussing with “other relevant authorities.”
"The acceptance of VAs for the payment of goods and services remains at the discretion of any merchant and buyer willing to participate in such an exchange or trade.”
Despite these developments, digital currencies are still not considered legal tender in Namibia.
In April 2021, the BON claimed its laws do not cover virtual assets. The bank added that it would not entertain any complaints if users were targeted by crypto-related scams.
Interestingly, the Namibian Central Bank has now changed its stance on crypto. It authorized merchants to accept crypto assets as payment so long as both parties are willing to take part in such transactions.
In the words of Johannes Gawaxab, Governor of BON,
“The future of money is at an inflection point. The battle between regulated and unregulated money on the one hand, and sovereign versus non-sovereign money on the other.”
