World Watch/Ethiopia/Crypto & Digital Assets

Crypto & Digital Assets · Ethiopia

Crypto & Digital Assets - Ethiopia

DevelopingNational Bank of Ethiopia (NBE) — Proclamation No. 1359/2024 (Payment Systems); National Payment System (Amendment) Proclamation No. 1282/2023; NBE Public Notice on Birr-Paired P2P Crypto Transactions (February 2026)

Ethiopia restricts crypto use for domestic payments and exchange but permits licensed bitcoin mining. The National Bank of Ethiopia (NBE) formally prohibited all Birr-paired peer-to-peer crypto trading in February 2026, causing major exchanges (Binance, OKX, Bybit) to suspend Ethiopian Birr P2P services. A comprehensive digital-asset regulatory framework is under active development but not yet enacted.

Blanket ban on crypto payments

The NBE has consistently held that the Ethiopian Birr is the sole legal tender; using cryptocurrencies for payment transactions is explicitly illegal under Proclamation No. 1359/2024 and its predecessors.

February 2026 P2P trading ban

On 27 February 2026, the NBE issued a public notice explicitly prohibiting Birr-denominated P2P crypto transactions on trading platforms unless specifically authorised, citing volatility, forex manipulation risk, fraud, and absence of AML/CFT safeguards.

Bitcoin mining permitted under licence

By 2024, the NBE began issuing mining-only licences; licensed miners must comply with AML/KYC requirements. Ethiopia accounts for approximately 2.5% of the global Bitcoin network hash rate, attracted by low-cost renewable energy.

Comprehensive framework under development

The NBE, Capital Markets Authority, and technology ministries are jointly drafting a digital-asset regulatory framework; public consultations are expected to wrap up by mid-2026, with final rules to follow.

Digital Birr CBDC under study

The NBE Governor has publicly discussed modelling a retail central-bank digital currency ('Digital Birr'); feasibility studies are ongoing with pilot trials tentatively targeted for 2026–2027.

Exchange market impact — Binance/OKX/Bybit exit

Following the February 2026 NBE notice, Binance announced suspension of Birr P2P services effective 15 May 2026; OKX and Bybit similarly withdrew, leaving no compliant retail on-ramp for Ethiopian users.

Machine-assisted translation · verified 5/24/2026 · orientation, not legal advice. English version →