Kenya Treasury Proposes 30% Stablecoin Reserve Requirement in Local Banks

According to Business Daily Africa, Kenya's National Treasury proposed a mandate requiring stablecoin issuers to hold at least 30% of reserves in dedicated accounts at local commercial banks. The Treasury aims to protect Kenya's financial ecosystem from digital asset market volatility and ensure domestic liquidity. Cryptocurrency platforms warn the rule could lock up operational liquidity and increase costs for consumers using stablecoins for cross-border remittances. Industry leaders are seeking continued engagement with regulators to balance investor protection with sector growth, with no deadline finalized for the draft rules.
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