The Kenyan interior minister, Kithure Kindiki, appeared before a parliamentary committee investigating Worldcoin’s activities in Kenya12. Worldcoin is a cryptocurrency project that claims to use facial recognition technology to distribute digital currency to everyone in the world.
Kindiki used the opportunity to reiterate the government’s opposition to cryptocurrencies, saying that they are "a threat to national security and a conduit for money laundering and terrorism funding"12. He also claimed that cryptocurrencies are "unregulated, volatile, and prone to fraud"12.
Kindiki cited examples of terrorist groups such as Al-Shabaab and Boko Haram using cryptocurrencies to fund their operations. He also mentioned the case of a Kenyan woman who was arrested for allegedly laundering over $7 million through cryptocurrencies.
However, some of the arguments made by Kindiki have been challenged by experts and analysts who say that there is no evidence to support the link between cryptocurrencies and terrorism funding. They also point out that cryptocurrencies are not anonymous, but rather pseudonymous, meaning that transactions can be traced and verified by anyone on the blockchain123. Additionally, some critics argue that the government’s stance on cryptocurrencies is motivated by fear of losing control over the monetary system and the economy. They say that cryptocurrencies offer an alternative to the traditional financial system that is more inclusive, transparent, and efficient.
Furthermore, some proponents of cryptocurrencies say that they can help combat money laundering and terrorism funding by providing a more secure and traceable way of transferring value across borders123. They also suggest that cryptocurrencies can foster innovation and development in Kenya and other African countries by enabling access to digital services and opportunities.
The Kenyan interior minister, Kithure Kindiki, appeared before a parliamentary committee investigating Worldcoin's activities in Kenya on March 9, 2023. The National Assembly amended its standing orders to allow Cabinet Secretaries to appear before the House from March 23, 2023.