Due to its intention to complete testing on cryptocurrency laws by the end of June, Zambia is in the lead of the field.
The government seeks to strike a balance between expanding technology and safeguarding its citizens, according to science and technology minister Felix Mutati.
The minister added that laws governing the usage of digital currencies would be drafted using the testing results. Zambia is paving the way by simulating real-world use to determine its potential impact on its citizens and economy, in contrast to other staunch African governments who have been reluctant to accept digital currencies.
Africa is embracing cryptocurrencies
The Central African Republic was the first nation to decriminalize bitcoin (BTC) and launch its own cryptocurrency token in December 2017. Nigeria, on the other hand, has adopted a more cautious stance because the central bank of the nation forbids banks from handling bitcoin holdings.
The value of cryptocurrencies experienced a sharp decline over the course of the previous year as a result of the failure of the exchange FTX and other enterprises.
However, Mutati claims that they came back this year, which increased interest in investing in Zambia. This pattern has been noticed. The Chinese government is Zambia’s largest creditor, holding about $5.7 billion of the estimated $18.6 billion in total foreign debt owed by the nation.
Some authorities from the West have claimed that China is delaying the reorganization process. During Mutati’s tenure as finance minister from 2016 to 2018, which lasted from 2016 to 2018, different types of Chinese loans were negotiated upon depending on the project, according to Mutati.
For instance, the Kafue Lower Gorge hydropower project was discussed with Sinohydro by the state-owned power company Zesco. This project is funded by a $1 billion loan from the Industrial and Commercial Bank of China and the Export-Import Bank of China.
Additionally, it was the administration that initiated construction on Lusaka’s new international airport. The Chambishi economic zone, on the other hand, was under the control of Chinese businessmen.
Zambia is focusing on enhancing its digital infrastructure while keeping a healthy balance between innovation and protecting its population in order to build an exciting future for the country.
