Kenyan President William Ruto has recently announced that his government has requested Marathon Digital, a US-based bitcoin miner, to review the country’s cryptocurrency regime.

In his opening speech, Ruto said of the talks with Marathon,“This is a powerful testament to the vast transformative possibilities that exist in an expanded and comprehensive understanding of trade and investment between the United States and East Africa.”

This move is seen as a significant shift from the Central Bank of Kenya’s previous strict approach towards cryptocurrencies.

Under the leadership of former governor Patrick Njoroge, the CBK used to caution Kenyans against engaging with cryptocurrencies, citing concerns such as money laundering, fraud, and the increased risk of terrorism financing.

In one of his most fierce anti-crypto statements, Njoroge reportedly told members of the Kenyan legislature that it would be ridiculous to consider the CBK converting the country’s reserves to Bitcoin (BTC).

He further suggested that he should be detained if he ever agreed to such a proposal. However, since Njoroge’s departure, Kenyan authorities have been exploring ways to regulate, rather than ban or limit, the use of cryptocurrencies.

The government has even involved the Kenyan Blockchain Association in the process of drafting crypto regulations.

In a recent development, the government appointed a working group to develop a framework for regulating and monitoring virtual asset service providers.

To sustain this momentum, President Ruto confirmed at the recently held AMCHAM Business Summit that Marathon Digital has been appointed as its consultant on matters pertaining to its cryptocurrency regime.

The AmCham Business Summit is a prestigious forum where American companies interested in expanding into Kenya and the East African region can network and explore opportunities for growth.

The US-based Bitcoin miner will also discuss electricity usage in cryptocurrency mining with the Kenyan Energy Ministry.

Marathon,one of the five largest crypto miners in the world, is headquartered in the United States but has joint mining ventures in Abu Dhabi and Paraguay.

Notably, the AMCHAM Business Summit was attended by several prominent figures, such as US Secretary of Commerce Gina Raimondo, Kenya Investment and Trade Cabinet Secretary Rebecca Miano, US Ambassador to Kenya Meg Whitman, and representatives from Kenyan and US companies.

This development is expected to boost the adoption of cryptocurrencies in Kenya, which already has a thriving remittance market and a growing interest in cryptocurrencies.

The popularity of cryptocurrencies in Kenya is attributed to factors such as a large unbanked population, high mobile phone penetration, and a vibrant fintech ecosystem.

Furthermore, the use of cryptocurrencies in Kenya has also gained momentum due to the COVID-19 pandemic, which has accelerated the adoption of digital payments.

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The pandemic has also highlighted the need for more efficient and cost-effective cross-border payment solutions, which cryptocurrencies can provide.

Undeniably,the Kenyan government’s decision to appoint Marathon Digital as its consultant on matters pertaining to its cryptocurrency regime is a positive development for the cryptocurrency industry in Kenya.

It is a step towards creating a more conducive environment for the growth and adoption of cryptocurrencies in the country, which can potentially bring about financial inclusion and economic growth.