Zimbabwe seeks input from the public to develop cryptocurrency regulations
Zimbabwe is currently inviting the public to provide feedback on cryptocurrency regulations as part of its efforts to incorporate new technologies into its economic structure.
According to Bloomberg, the government of Zimbabwe has issued a statement in a state-owned newspaper, calling for input on the regulation of cryptocurrencies. The aim is to create a policy framework for this rapidly growing industry.
The government is seeking feedback from both local and international cryptocurrency service providers who cater to customers in Zimbabwe. They have set a deadline of June 26 for submissions. To aid in this process, a special committee has been established to engage with stakeholders in the crypto sector.
Having been cut off from international capital markets since 1999 due to debt default, Zimbabwe is now exploring innovative ways to revitalize its economy.
In a move to stabilize the economy, Zimbabwe introduced its first digital token backed by gold in 2023. More recently, in April of this year, the country introduced ZiG, a new currency, in an attempt to address the ongoing financial instability. This new currency replaced the Zimbabwean dollar, which had experienced multiple crashes leading to high inflation rates.
Despite previous caution from the Reserve Bank of Zimbabwe regarding cryptocurrencies, recent developments such as the issuance of the gold-backed token and the launch of ZiG indicate a shift towards embracing digital solutions to economic challenges.
The International Monetary Fund highlighted in a research report that only a quarter of sub-Saharan African countries have formal regulations for cryptocurrencies. The majority have implemented restrictions, with some countries like Cameroon and Ethiopia going as far as banning cryptocurrencies altogether. In Zimbabwe, the government has instructed banks to halt processing crypto-related transactions.
For more information, you can read about the Reserve Bank of Zimbabwe’s ban on Bitcoin, the country’s only hope for monetary stability.
