The Zimbabwean government is in the process of developing regulations for the cryptocurrency industry within the country and is seeking input from both local and international cryptocurrency service providers.
As reported by The Zimbabwe Mail, a committee has been established by the government to gather information from crypto businesses operating in Zimbabwe, with a deadline for comments set for June 26.
Nick Mangwana, the Permanent Secretary for Information and Publicity, explained that the objective of this initiative is to gain a thorough understanding of Zimbabwe’s virtual assets ecosystem. He emphasized the need to assess the risks associated with cryptocurrencies being used for activities such as money laundering, terrorism financing, and other illicit practices.
The government of Zimbabwe is aiming to establish a regulatory framework that is tailored to the specific requirements and circumstances of the country. This framework will prioritize finding a balance between promoting innovation and ensuring the security and stability of the financial system.
In efforts to address financial challenges and keep up with the increasing trend of cryptocurrency adoption, Zimbabwe introduced a gold-backed digital currency called Zimbabwe gold (ZiG) in May last year, despite warnings from the International Monetary Fund. The success of the gold-backed digital currency led the government to announce in October that it could now be utilized as a payment method.
Zimbabwe has faced economic struggles, including inflation and currency fluctuations for over a decade. Following a period of hyperinflation, the country adopted the U.S. dollar as its official currency in 2009. In 2019, the government reintroduced the Zimbabwean dollar in an attempt to revitalize the economy, but this move was followed by another cycle of high volatility. Last year, the administration reverted back to using the U.S. dollar to combat inflation.
In other news, an article explores why Senegal, an African country, has embraced the use of Bitcoin.