Uganda’s recent move to tighten mobile money regulations has sparked both applause and concern among citizens and experts alike.
The directive from the Bank of Uganda stipulates that customers must present a valid National Identity Card for withdrawals exceeding one million shillings, aiming to clamp down on cybercrime.
While some view this as a necessary step to combat fraudulent activities that plague mobile money platforms, others warn of potential pitfalls in relying solely on ID verification.
Cybersecurity expert Emmanuel Chagara acknowledges the intent behind the directive but raises doubts about its efficacy.
He cautions that National Identity Cards could be forged, undermining the security measures intended to be put in place.
Chagara also points out the broader financial landscape in Uganda, where a significant portion of the population relies on informal savings methods like Village Savings and Loans Associations or home savings boxes.
Despite this, mobile money remains a vital financial tool for many Ugandans, offering convenience and lower transaction costs.
While digital payments have their advantages, including cost savings, addressing the risk of ID forgery is crucial for the success of the new policy.
As the regulations come into force, stakeholders must closely monitor their impact to ensure they strike the right balance between security and accessibility for mobile money users across Uganda.