The National Bank of Ethiopia has issued a notice stating that peer-to-peer cryptocurrency trades involving the Birr are illegal under current regulations. The central bank emphasized the need for financial stability while working on a future regulatory framework. Unauthorized platforms facilitating such trades are prohibited unless approved by the NBE.
On February 27, 2026, the National Bank of Ethiopia (NBE) released a statement clarifying the legal status of digital asset trading in the country. The notice specifies that any platform, exchange, or service enabling Birr-paired peer-to-peer (P2P) trading is banned unless explicitly authorized by the NBE. This measure aims to define the boundaries of cryptocurrency activities within Ethiopia's financial system.
The NBE highlighted that the national payment system does not include informal channels like these P2P trades, which operate outside the regulated ecosystem and lack essential safeguards provided by formal institutions. Despite recognizing the worldwide expansion of digital and virtual assets, the central bank reaffirmed its dedication to preserving financial stability and integrity.
The institution is currently crafting a detailed regulatory framework to allow secure engagement with digital asset technologies in the future. 'This process includes ongoing consultations with international peer regulators and domestic stakeholders to ensure alignment with global best practices,' the NBE stated. Until this framework is implemented and approvals are granted, individuals engaging in Birr-paired P2P cryptocurrency transactions are warned that they violate existing rules.
This development underscores the NBE's cautious approach to emerging financial technologies, balancing innovation with oversight.