CENTRAL BANK OF SWAZILAND
"UMNTSHOLI WEMASWATI"
PUBLIC STATEMENT ON VIRTUAL
CURRENCIES ("BITCOIN")
The Central Bank of Swaziland Order 1974 (as purposes or to facilitate fraudulent activity.
amended) stipulates that only notes and In fact, the anonymity and speed of
coins issued by the Central Bank shall be
execution in transacting with cryptocurrency
legal tender in Swaziland. Currently, the makes it more susceptible to abuse by
Bank has authorized, as legal tender in unscrupulous persons. This presents a risk
Swaziland, the Lilangeni (SZL), as well as the to users of the currency because there is
South African Rand (ZAR) which continue to
no protection or legal recourse available
circulate side by side and on par. Other
from any institution including the Central
foreign currencies are traded by licensed Bank in the event that the user suffers
institutions in the country in line with financial loss from the use of Bitcoin or any
applicable exchange control legislation and other cryptocurrency.
it is understood that these foreign currencies
have, as a key attribute, the feature that
The Central Bank, in line with its mandate to
they are issued and redeemed by the duly
issue and redeem currency as well as to
promote safe and accessible payment
authorized institution in their country of
issue and hence enjoy legal tender status,
systems, continues to closely monitor
developments in the financial services
which a cryptocurrency by definition, does
industry with a view to ensure that the
not.
regulatory framework remains relevant and
The Bank is aware that Bitcoin is one of the appropriate. The Bank acknowledges its role
leading cryptocurrencies globally, and has in supporting innovation and adoption of new
been advised of instances where this
technologies in the industry and together
currency is being marketed and traded in the with many other regulatory institutions
country. However, the Bank notes that due to
worldwide, adopts an optimistic but cautious
its nature as a cryptocurrency, there are no view that the financial services industry will
restrictions, disclosures or regulatoryy
certainly benefit from these technologies
compliance applicable to transactions but that their development and deployment
executed using Bitcoin and yet, like any must be done in a manner that sufficiently
other currency, it can be used for illegal
safeguards the interest of the users.