Botswana’s central bank acknowledges minimal crypto risks but highlights money laundering and regulatory concerns as key priorities.
Botswana’s central bank said the country’s local crypto markets remain undeveloped, creating only “minimal” risks to financial stability. Still, the bank said that regulations should be put into place to prevent potential digital-asset risks in the future.
In its Financial Stability Report, the central bank said that the increasing interconnectedness of the crypto market with the rest of the financial system presents potential future systemic risks.
In a financial context, a systemic risk refers to a cascading failure caused by links within the financial system. The resulting domino effect could result in an economic downturn.
