Stablecoin issuer / redeemer in Ethiopia

E-money: The NBE regulates "e-money" through directives like the Payment Instruments Issuers Directive No. FIS/01/2012. However, this directive defines e-money as electronically stored monetary value that is represented by a claim on the issuer (typically a licensed financial institution), accepted as a means of payment, and convertible into fiat currency at par. Stablecoins, especially those not issued by NBE-licensed entities and not recognized by the NBE, do not fit this definition and are not treated as regulated e-money. The NBE explicitly stated that "virtual currencies" are distinct from "digital financial services" offered by licensed institutions (like Ethio Telecom's Telebirr, which is regulated e-money).

Any entity attempting to issue a stablecoin in Ethiopia would likely be operating outside the financial regulatory framework and potentially in violation of general financial services laws that require licensing for financial operations.

For traditional e-money issuers (like banks or telecom companies licensed by the NBE), there are strict reserve requirements, licensing procedures, and redemption guarantees as outlined in directives such as Payment Instruments Issuers Directive No. FIS/01/2012 and the National Payment System Proclamation No. 718/2011. However, these rules apply to regulated e-money, not unrecognized stablecoins.

Payment Instruments Issuers Directive No. FIS/01/2012: This directive outlines the requirements for issuing "e-money" and other payment instruments by financial institutions licensed by the NBE. This is crucial for understanding what is considered regulated digital value.

National Bank of Ethiopia Public Statements/Warnings: The NBE has issued various warnings to the public regarding the use of cryptocurrencies. While these are often press releases or media statements rather than formal directives, they clearly communicate the NBE's stance.

Example of news coverage referencing NBE's stance:

Reuters article (Feb 2023): Ethiopia passes virtual asset law as central bank warns against crypto

Public Prohibitions and Warnings: The NBE consistently reminds the public that crypto is illegal.

Criminal Enforcement: Individuals found engaging in illegal activities (like illicit foreign exchange or money laundering) where crypto is used as a medium might face criminal prosecution under existing laws, rather than a specific "cryptocurrency enforcement action" by a financial regulator. These are typically handled by law enforcement and the justice system, not the NBE issuing administrative fines to a crypto company.

National Bank of Ethiopia (NBE) Statement (June 2022) - Via Fana Broadcasting Corporate:

This widely reported statement reiterated that "cryptocurrencies are illegal, not recognized as legal tender."

Concerns over financial stability.

Lack of regulatory oversight and consumer protection.

Potential for illicit financial activities (money laundering, terrorism financing).

Impact on foreign exchange reserves and capital controls.

Monetary policy concerns.

Cryptocurrency Exchanges: No licenses are available, as trading cryptocurrencies is generally prohibited.

Cryptocurrency Custody Providers: No licenses are available, as holding or managing cryptocurrencies for third parties is not recognized or permitted.

Cryptocurrency Payment Processors: No licenses are available. While the NBE does license payment instrument issuers and payment system operators for traditional fiat-based digital payments (like mobile money services), these licenses explicitly exclude virtual assets.