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Why is Mpesa Bank not regulated by CBK?
a4architect.com
#41 Posted : Thursday, May 02, 2013 3:20:45 PM
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@muganda. true. Only cbk/delarue can create paper money and somehow get away with it. Yu cash and airtel money dont control emoney that much compared to safcom.
Safcom has the inherent ability to create money so we can compare safcom to cbk/de la rue in terms of ability to create inflation. A simple sms from safcom can make you kes 140k richer. Only safcom knows/authenticates this ammount though maybe there is somewhere in the long run that cbk accounts for the ammount of mpesa balance in comparison to real hard cash.
As Iron Sharpens Iron, So one Man Sharpens Another.
Museveni
#42 Posted : Thursday, May 02, 2013 3:29:26 PM
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Joined: 8/16/2012
Posts: 660
a4architect.com wrote:
@muganda. true. Only cbk/delarue can create paper money and somehow get away with it. Yu cash and airtel money dont control emoney that much compared to safcom.
Safcom has the inherent ability to create money so we can compare safcom to cbk/de la rue in terms of ability to create inflation. A simple sms from safcom can make you kes 140k richer. Only safcom knows/authenticates this ammount though maybe there is somewhere in the long run that cbk accounts for the ammount of mpesa balance in comparison to real hard cash.


On this discussion I have to really sit on the sidelines now & watch since no one is willing to give a situation where SCOM can fuel inflation

How? Really.
Live and learn; and don’t forget, nothing ventured, nothing gained.
a4architect.com
#43 Posted : Thursday, May 02, 2013 3:53:14 PM
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@museveni. Assuming safcom unleashes kes 10b into the economy through creation of fake mpesa smses to various phone numbers which are then withdrawn into hard cash. This means there is 10b in the economy to buy goods/services made out of real value. The net effect is that the goods/services sellers will ask for more cash so as to make a profit than before the injection of the fake money. This situation is what usually comes out as inflation. Note that all this is hypothetical.Am sure there should be safegurds to ensure mpesa is in tandem with the hard cash and vise versa. Just like the recent inflation fueled by the piracy money.
As Iron Sharpens Iron, So one Man Sharpens Another.
Museveni
#44 Posted : Thursday, May 02, 2013 4:10:56 PM
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@a4architect.com 10B = over 140K transactions of the maximum amount 70K.

This to random a/c's.

The complaints/celebrations of free money, even to 10 A/C's, do you think would fly under the radar [at least of the social media] ?

And the complaints by competitors ?

Surely these would never just fly under the 'radar' of the regulator.

Self regulation due to competition is a bigger check on the hypothetical occurrences as opposed to the regulator.

Live and learn; and don’t forget, nothing ventured, nothing gained.
a4architect.com
#45 Posted : Thursday, May 02, 2013 4:21:08 PM
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Joined: 1/4/2010
Posts: 1,668
Location: nairobi
@museveni thats why am saying its hypothetical. In the real world, the scam puller must be in the league of akina Pattni in pulling such scams.
We can look at the various methods such stunts can be pulled. Remember safcom controls the sim cards so a conspiracy to create thousands of sim cards each with the 70k mpesa and systematically withdraw eveny throughout the country within a 2 year time frame etc etc. Ofcourse at some point they can get caught but in the meanwhile, a few will be laughing all the way to the mpesa..
As Iron Sharpens Iron, So one Man Sharpens Another.
Museveni
#46 Posted : Thursday, May 02, 2013 9:20:25 PM
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Joined: 8/16/2012
Posts: 660
a4architect.com wrote:
its hypothetical. In the real world, the scam puller must be in the league of akina Pattni in pulling such scams...


Such a stunt is not really easy to pull in this 'digital age'.

What would be the motivation for such since the eventual loser is the company/shareholders ?

There being strong competitors it would probably not even get bailed out of the mess.

BTW an not defending the company(ies) as I have almost zero vested interests huko
Live and learn; and don’t forget, nothing ventured, nothing gained.
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