The National Bank of Ethiopia published a public notice clarifying that peer-to-peer (P2P) transactions conducted through trading platforms using Birr as the paired currency are not permitted unless explicitly authorized by the central bank, and that any Birr-denominated P2P trading or exchange involving cryptocurrencies is prohibited. The notice advises the public to exercise caution when engaging with digital and virtual assets, citing risks including significant volatility, exposure to foreign exchange price manipulation, fraud and scams, operational risks, and the absence of safeguards such as Anti-Money Laundering and Combating the Financing of Terrorism protections common in regulated financial systems. It also points to international experiences where some P2P platforms and crypto-asset exchanges faced financial and technical challenges that restricted users’ access to their funds. Work is under way on a comprehensive regulatory framework intended to enable safe and orderly participation in emerging digital-asset technologies, including consultations with international peer regulators and domestic stakeholders. Until that framework is formally introduced, Birr paired P2P cryptocurrency transactions remain prohibited.
National Bank of Ethiopia 2026-02-27
National Bank of Ethiopia confirms Birr paired P2P cryptocurrency transactions on trading platforms are prohibited without authorization
The National Bank of Ethiopia has prohibited peer-to-peer transactions using Birr as the paired currency on trading platforms unless explicitly authorized, and banned Birr-denominated P2P cryptocurrency trading. The notice highlights risks such as volatility, fraud, and lack of regulatory safeguards, while work continues on a comprehensive regulatory framework for digital assets.