Regulation
Zimbabwe requests public information on cryptocurrency regulation efforts
The government of Zimbabwe has announced an initiative to seek public opinion on cryptocurrency operations as it develops regulatory policies for the sector.
Therefore, this effort is part of a broader attempt to align global trends and best practices in cryptocurrency management.
In a statement published in the state-run Herald newspaper, the Zimbabwean government called on all cryptocurrency service providers, both domestic and international, to provide their comments and feedback. The government emphasizes the importance of understanding the cryptocurrency landscape to formulate effective regulations.
Additionally, the consultation process involves a newly created committee tasked with engaging operators within the virtual asset ecosystem. The deadline for comments was June 26.
Historical context and recent developments
Zimbabwe has a turbulent financial history, marked by hyperinflation and monetary instability. Last year the government introduced a virtual token to stabilize the economy. In April, Zimbabwe launched a new currency, ZiG (short for Zimbabwe Gold), with the aim of establishing a stable local unit. It is the sixth currency change in 15 years, following the repeated failure of the Zimbabwe dollar, which was reintroduced in 2019 but succumbed to high inflation.
The country’s persistent financial difficulties are exacerbated by its exclusion from international capital markets since 1999, following a default on its debts. Zimbabwe is currently trying to restructure about $19.2 billion owed to creditors, including $13 billion to international investors.
In May, Zimbabwe’s statistical agency began calculating inflation using ZiG as a basis. The transition to a new currency unit showed positive signs, with consumer prices falling by 2.4% between April and May. However, inflation remained high at 57.5% in April, calculated using a combined measure of the defunct Zimbabwe dollar and the US currency.