Why Kenyans rush to cash, when banks go bust

Banking Crisis
Just now, Kenya’s #CoopBankTradingScam is trending on Twitter, and already, people are touting cash as a safer option

“If #CoopBankTradingScam goes on I bet people will panic just like Chase Bank & withdraw their cash. Co-op Bank could collapse by 4p.m!”

Kenya’s current recent banking crisis, if I may call it that, is a long list of 32 banks that fell to the wayside since 1988. Almost always, there is never enough cash to give. The reason is, all the money held in banks is debt, a string of electronic digits that says the bank owes you money. As we transition from cash to electronic money, we face a wider systemic risk.

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Kenya’s Banking crisis is a Testament to Bitcoin

Cover
This week, the 3rd Kenyan bank in 8 months was placed under receivership for 12 months by the Central Bank of Kenya. The country’s Banking regulator says, Chase Bank of Kenya misreported its loans resulting in a social media triggered bank run. Kenya’s short banking history is littered with banks that fell to the wayside. Here is a list

@Owaah on twitter

I unashamedly drained my Chase Bank account the morning of the bank run. I would do it again with any other bank. Fraud is not patriotism.

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Uganda’s Mobile Money Censorship is a Testament to Bitcoin

Money as a form of Communication

The censorship of mobile money in Uganda during its Presidential and parliamentary elections, is a testament to the need for apolitical digital currencies like bitcoin. Money, just like media is a means of communication. Just as social media censorship riles up freedom activists, so should forms of censorship on money.

On election day, Ugandans woke up to no social media and no mobile money services. Nearly 20 million mobile money users were unable to access the service for at least two-and-half days.

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Kenya clamps down on Cash

From my Twitter timeline, I can tell there is a lot written about the ongoing war on cash; an international war on physical paper and coins. Today, it was much closer to home.

Central Bank’s new tough rules to monitor large cash transactions was an article from the Standard Digital dated January 28, 2016 [Read more…]

Why isn’t Africa adopting Bitcoins massively for money-transfers?

Bitcoin adoption in Africa, not what you expect

Answer by Michael Kimani:

There’s a lot of variables in play before bitcoin can be used for money transfer on a significant scale. I’ll outline a few.

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