The National Bank of Ethiopia (NBE) has issued a public notice stating that peer-to-peer (P2P) cryptocurrency transactions denominated in Ethiopian Birr are prohibited unless expressly authorized by the Bank.
In its statement released on Thursday, the central bank clarified that the use of Birr-paired P2P arrangements on trading platforms, exchanges, or similar services is not permitted under the current regulatory framework.
Related articles
The prohibition applies to any form of Birr-denominated trading or exchange involving cryptocurrencies.
The Bank cautioned the public against participating in unregulated digital asset markets, citing risks such as high price volatility, exposure to fraud and scams, foreign exchange manipulation, operational failures, and the absence of robust Anti-Money Laundering and Counter-Terrorism Financing safeguards typically present in regulated financial systems.
The NBE also referenced recent international cases where certain P2P platforms and crypto exchanges experienced financial and technical challenges, in some instances limiting users’ access to their funds.
It advised individuals to carefully assess the risks associated with digital assets and ensure that such investments align with their financial objectives and risk tolerance.
According to the statement, the central bank is working toward establishing a comprehensive regulatory framework for digital assets.
The process includes consultations with international regulators and domestic stakeholders to align with global best practices while safeguarding financial stability and the integrity of Ethiopia’s national payment system.
Until such a framework is formally introduced, Birr-paired P2P cryptocurrency transactions remain prohibited.
The NBE reaffirmed its commitment to consumer protection and to maintaining a stable and sound financial system amid evolving technological developments.
