Mauritius Central Bank Contradicts Coindesk

The Mauritius government has made it clear that it is against Bitcoin and other cryptocurrencies. The government has taken a stand to stay away from them at any cost. They are also trying to convince people that this new kind of money is a threat to their economy and also useful for money laundering. It is evident from this speech that Mauritius wants strict regulation of cryptocurrencies.

The speech below was made by the Governor of the Mauritius Central Bank. It exposes the false news repeatedly being published by Coindesk about Mauritius being a crypto friendly country. It is always recommended to follow the media outlets that are honest rather than following ones that are simply exciting to read. Core group always places emphasis on honest media content coming right from the source and does not believe in attracting readers using false and misleading news.

Central Bank Governor’s Speech on Cryptocurrencies

The Governor has clearly stated that there is an over-reaction to the illusory attraction and an under-reaction to reality. He indirectly mentions the fake news of Coindesk and calls it “illusory”. He mentions that Cryptocurrencies attract anonymity and helps people to launder money.

“Cryptocurrencies are found to be attractive to those seeking anonymity. It means what it means. This is rightly an occasion for me to clear the cloud surrounding the Bank of Mauritius stands about cryptocurrencies”

He further adds that the bank is investigating the use cases of blockchain technology in regular banking, but related to the adoption of Bitcoin and other cryptocurrencies there is a huge question mark in the central bank community. The governor doesn’t deny the fact that the cryptocurrencies eliminate fees and other charges, but at the same time helps people to launder money.

“While the argument that cryptocurrencies eliminate fees, charges and other costs of intermediation is no doubt valid, the argument that they are a very convenient means of laundering money is equally valid”

He further states that cryptocurrencies are only a speculative investment playing almost no role as a means of payment. It doesn’t physically exist and is invisible, the governor notes. He adds that there are 1300 cryptocurrencies and the number is more than that of national currencies in existence. The central government finds it difficult to regulate them and also in recognizing the valid ones in the “vast jungle”. He raises the below questions and mentions the difficulty in regulating Bitcoin and other cryptocurrencies

“How do we recognize them and who is who in this vast jungle? And how do we effectively regulate them?”

But he reassures that the bank is very digital-minded and was the first to go for real-time electronic payment and settlement in 2000. He added that they will be launching a National Payment Switch next year and it will be a pillar for Mauritian digital economy.

He strongly reiterates that the Central Bankers are viewing Bitcoin and altcoins having the potential to make the future financial crisis even more devasting and the risk associated with digital currencies are far from minimal. Finally, he requested the public to avoid Fake news and only consult research studies produced by the responsible organization.

“In a world characterized by the dense traffic of post-truths and fake news, policymakers need to consult research studies produced by responsible organizations. Truths are turning out to be underpowered antibiotics….”

The above mentioned was indirectly pointing to the Coindesk article mentioning that Mauritius being friendly to Blockchain and Cryptocurrencies.

Fake and False News Everywhere

The above excerpt of the speech by the Central Bank Governor reiterates that they are against cryptocurrencies. There are also rumors that they plan to freeze bank accounts of those entities dealing directly or indirectly with cryptocurrencies. This is one such example of the media reporting false news on cryptocurrencies.