Cryptocurrencies and regulatory challenges in the Democratic Republic of the Congo
Trésor Gauthier M. Kalonji and Serge Songolo
SUMMARY
The advent of cryptocurrencies in the financial sector is generating keen interest across the globe, particularly among businesses and individuals. This is singularly dependent on the potential of these virtual currencies to complement – or even replace – long-established institutions (such as commercial banks and central banks) with a new, fully decentralised system, based on blockchain and the intrinsic distributed ledger technology. The prospect of cryptocurrency regulation is also highly relevant in the Democratic Republic of the Congo, where the already dollarised national economy may – in the future – find itself further « invaded » by cryptocurrencies. Thus, the purpose of this contribution is to facilitate the understanding of the regulatory attempts currently under way around the world regarding cryptocurrencies, and to relate them to the Congolese context, in order to discover the possible foundations for an appropriate national regulation.
Keywords: Cryptocurrency, Financial risk, Financial regulation, Digital money, Democratic Republic of the Congo
JEL codes: G18, G28
ABSTRACT
The advent of cryptocurrencies in the financial sector is attracting a lot of interest across the world, particularly from businesses and individuals. This is particularly due to the potential of these virtual currencies to complement – or even replace – long-established institutions (such as commercial banks and central banks) with a new, fully decentralised system based on blockchain and intrinsic distributed ledger technology. The prospect of cryptocurrency regulation is also relevant in the Democratic Republic of Congo, where the already dollarised national economy may – in the future – find itself further « invaded » by cryptocurrencies. Thus, the purpose of this contribution is to facilitate the understanding of current attempts at regulation around the world, regarding cryptocurrencies, and to relate them to the Congolese context, in order to discover the possible bases for an appropriate national regulation.
Keywords : Cryptocurrency, Financial Risk, Financial Regulation, Digital Money, Democratic Republic of Congo
JEL codes : G18, G28