Zimbabwe is currently inviting the public to provide feedback on the regulation of cryptocurrencies as the country looks to incorporate new technologies into its economic structure.
According to a report by Bloomberg, the government of Zimbabwe has issued a statement in a state-run newspaper, calling for input from cryptocurrency service providers, both local and international, who cater to Zimbabwean customers. The deadline for submissions is set for Jun. 26, with a dedicated committee in place to engage with members of the crypto community for a comprehensive evaluation.
Since 1999, Zimbabwe has been cut off from international financial markets due to defaulting on debt repayments. Consequently, the country is exploring alternative methods to revitalize its economy.
In a bid to stabilize the economy, Zimbabwe introduced its first digital token backed by gold in 2023 after facing years of financial instability. Earlier this year, the country launched a new currency called ZiG as part of ongoing efforts to combat high inflation rates. This move replaced the Zimbabwean dollar, which had suffered from multiple crashes following its reintroduction in 2019, leading to further inflation.
Despite historical caution from the Reserve Bank of Zimbabwe regarding cryptocurrencies, with a focus on consumer protection and financial system stability, the introduction of the gold-backed token and ZiG signals a shift towards embracing digital solutions to economic challenges.
According to a research report by the International Monetary Fund, only a quarter of sub-Saharan African countries have formal regulations for cryptocurrencies. The majority have imposed restrictions, while six countries, including Cameroon and Ethiopia, have outright banned cryptocurrencies. In Zimbabwe, all banks have been instructed to stop processing crypto-related transactions.
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Reserve Bank of Zimbabwe bans country’s only monetary hope: Bitcoin