By Spy Uganda
Prime Minister Dr Ruhakana Rugunda has finally issued a statement about fraudulent Crytpocurrencies operators in Uganda, in a statement he released Friday morning.
Rugunda is his statement titled ‘STATEMENT ON CRYPTOCURRENCIES AND PONZI SCHEMES’ exonerated his son Kwame Rugunda, who name was cited in Parliament this week among people running Ponzi and Pyramid Schemes, which have become notorious at conning Ugandans of their hard earned money.
However, the Prime Minister refuted the allegations and said that whereas his son Kwame is involved in promotion of 4th Industrial Revolution technology, he is not dealing in Crytpocurrencies like some legislators alleged.
Here below is Dr Rugunda’s statement about Crytpocurrencies in full;
Rt. Honourable Speaker, I make this statement to address allegations that were made by some Members of Parliament on Tuesday 4th February, 2020, regarding myself, and my son Kwame on Crytpocurrencies and Ponzi Schemes in Uganda.
The allegations also made reference to the National Taskforce on the 4th Industrial Revolution, and the problem of Ponzi Schemes and Crytpocurrencies.
Below are some of the facts surrounding this issue; Over the last few months this discussion has been going on both in Parliament and in the public domain, and has been informed by the various reports of fraud, in which companies have been collecting money from citizens, with the intention of investing in Ponzi Schemes.
Relevant Institutions of Government, including Bank of Uganda, have issued several announcements warning the public about these Schemes.
Furthermore, the respective authorities are investigating and the owners of two of these Companies namely; Global Crytpocurrencies and Dynamos Coin have since been arrested and their cases are currently being heard in court.
In order for government to provide policy direction, a National Taskforce was constituted under the Ministry responsible for strategic and technical leadership of the ICT Sector.
I would like therefore to clarify on two issues on the debate that ensued in Parliament on the Taskforce, and on Crytpocurrencies and Ponzi Schemes.
Regarding the Taskforce;
The National Taskforce on the 4th Industrial Revolution was launched by H.E The President, in April 2019, with the aim of proposing policy options to enable Government harness the new technologies of the 4th Industrial Revolution, which Artificial Intelligence, Blockchain, Robotics, Internet of Things, Cloud Computing, Drones, among others.
The Taskforce is currently developing a strategy for Uganda to harness the 4th Industrial Revolution and is considering global trends, with a focus on development and aspirations for Uganda and the East Africa region.
Crytpocurrencies are one applications of Blockchain Technology and the Taskforce is exploring them and will make recommendations on its application in Uganda.
Regarding Crytpocurrencies And Ponzi Schemes.
Crytpocurrencies and Ponzi Schemes are two different issues, but the ongoing discussion doesn’t differentiate them, presenting them as related.
The mixup is as a result of Ponzi Schemes referring to themselves as Crytpocurrencies, in an attempt to lure people to defraud them.This has caused society to think that Ponzi Schemes and Crytpocurrencies are related and yet they are different.
Some Ponzi Schemes may use cash or may use gold, or may use Crytpocurrencies, but their underlying motive is to defraud society, which is a crime punishable by law.
Crytpocurrencies are one of the new innovations that have many different applications mainly in reducing the costs of money transfer, and providing transparency in transactions. The have both benefits and risks which one must educate themselves about.
Uganda does not yet have a legal framework for Crytpocurrencies, but the responsible agencies of government are closely studying them and are also studying the legal regimes adopted in other countries.
Rt.Hon. Speaker, contrary to allegations made by some Members, I have never launched any Crytpocurrencies, Pyramid or Ponzi Scheme.
Whereas it is true my son Kwame is involved in the promotion of some the new technologies within the 4th Industrial Revolution, such as Blockchain technology, it is false that his business is in associated in any way to Ponzi Schemes.
Rt. Hon. Speaker it is understandable that since these are new technologies, information and knowledge about them is still limited.
We encourage responsible agencies of Government to provide greater public awareness about these and other new technologies, to avoid this mixup like we saw in the house.
