The Ministry of Finance, Planning and Economic Development and the Central Bank have urged Ugandans to stay away from cryptocurrencies saying government does not recognize any crypto-currency as legal tender and its use in Uganda.
The Minister of Finance, Planning and Economic Development, Matia Kasaija said in a news conference today that the government of Uganda has noted the emergence of the practice of using, holding and trading crypto-currencies in Uganda.
Uganda now joins close to 100 other countries that have publically warned their citizens against the use cryptocurrencies.
According to Mr Kasaija, most crypto-currencies such as Bitcoin and Ethereum are not backed by assets or government guarantees, therefore holders of these crypto-currencies are fully exposed to the risk of loss or diminishing value as the issuers are not obliged to exchange them for legal currency or other value.
Mr Kasaija said the public is advised to appraise themselves of the risks associated with cyber-currencies, and exercise caution before they make transactions involving such products.
