Regulation
Zimbabwe seeks public comments to create crypto framework
Zimbabwe is seeking public feedback on crypto regulation as the country aims to integrate emerging technologies into its economic framework.
Zimbabwe Asked for Public Opinion on Crypto Operations as It Crafts a Policy Framework for the Booming Sector, Bloomberg reportsquoting a government statement published in an official journal.
The government would like to “assess and understand” the cryptocurrency landscape by “inviting all cryptocurrency service providers”, both domestic and international, who offer services to Zimbabwean customers, to submit their comments by June 26. To facilitate the assessment, the government has created a committee to collaborate with operators in the crypto ecosystem.
Since 1999, Zimbabwe has been excluded from international capital markets due to its failure to pay its debts. As a result, the country is now looking for new ways to boost its economy.
In 2023, the country issued its first gold-backed digital token in a bid to stabilize its economy after years of financial crisis. In April this year, the African country introduced another currency, the ZiG, in its sixth attempt to stabilize the monetary system amid high inflation rates. The new currency replaced the Zimbabwean dollar, which had suffered multiple crashes since its reintroduction in 2019, exacerbating inflation.
Although the Reserve Bank of Zimbabwe has always been careful on crypto, highlighting the need to protect consumers and the financial system, the issuance of the gold-backed token and the launch of ZiG indicate a shift towards exploring digital solutions to economic challenges.
As noted by the International Monetary Fund in a research report, only a quarter of sub-Saharan African countries have formal regulations for cryptocurrencies. About two-thirds have implemented various restrictions, while six countries, including Cameroon and Ethiopia, have banned crypto outright. In Zimbabwe, the government has ordered all banks to stop processing crypto-related transactions.