Ethiopia’s Central Bank Bars Birr-Paired Peer-to-Peer Cryptocurrency Transactions Pending New Regulatory Framework

Addis Ababa, February 27, 2026 (FMC) — The National Bank of Ethiopia (NBE) has announced that Birr-paired cryptocurrency peer-to-peer (P2P) transactions remain illegal under the current regulatory framework and will continue to be prohibited until a formal regulatory structure is introduced.

In a public notice issued today, the central bank stated that the use of Birr-paired P2P arrangements on trading platforms, exchanges, or similar services and products is not permitted unless explicitly authorized by the National Bank of Ethiopia. It further emphasized that any form of Birr-denominated P2P trading or exchange involving cryptocurrencies is prohibited.

While acknowledging growing global interest in digital and virtual assets, the Bank advised the public to exercise caution and make well-informed decisions. According to the notice, such markets are often characterized by significant volatility, exposure to foreign exchange price manipulation, fraud and scams, operational risks, and the absence of key safeguards such as Anti-Money Laundering and Combating the Financing of Terrorism protections commonly found in regulated financial systems.

The NBE also cited recent international experiences showing that certain P2P platforms and crypto asset exchanges have faced financial and technical challenges, in some cases restricting users’ access to their funds. It said these developments highlight the need for the public to carefully assess whether such assets are consistent with their financial objectives and risk tolerance.

The Bank stated that it is actively working toward establishing a comprehensive regulatory framework that will enable safe and orderly participation in emerging digital asset technologies. This effort includes ongoing consultations with international peer regulators and domestic stakeholders to ensure alignment with global best practices, while preserving financial stability and the integrity of the national payment system.

Until such a framework is formally introduced, the National Bank reiterated that Birr-paired P2P cryptocurrency transactions remain prohibited.

The central bank reaffirmed its commitment to consumer protection and to maintaining a stable and sound financial system as technological innovation continues to evolve.