Zimbabwe seeks public input on cryptocurrency regulations to develop a policy framework, inviting feedback from domestic and international service providers by June 26.
Bloomberg cites a government statement published in a state-run newspaper as Zimbabwe has requested public feedback on crypto operations as it develops a policy framework for the sector’s growth.
By June 26, the government is reportedly seeking to “assess and comprehend” the cryptocurrency landscape by “inviting all cryptocurrency service providers,” both domestic and international, who provide services to Zimbabwean customers, to submit their comments.
The government has established a committee to engage with operators within the crypto ecosystem to facilitate the assessment.
Zimbabwe has been prohibited from participating in international capital markets since 1999 as a result of its failure to fulfill debt obligations. Consequently, the nation is currently in pursuit of novel strategies to stimulate its economy.
To consolidate its economy following years of financial instability, the nation issued its inaugural digital token in 2023, which was secured by gold. A sixth attempt to stabilize the monetary system in the face of high inflation rates was made by the African nation in April of this year, when it introduced another currency, ZiG.
The new currency superseded the Zimbabwean dollar, which had been subjected to numerous crashes since its reintroduction in 2019, thereby exacerbating inflation.
The Reserve Bank of Zimbabwe has historically been cautious about crypto, emphasizing the necessity of safeguarding the financial system and consumers. However, the issuance of the gold-backed token and the launch of ZiG suggest a shift toward the exploration of digital solutions to economic challenges.
Only one-quarter of countries in sub-Saharan Africa have formal regulations for cryptocurrencies, as the International Monetary Fund has observed in a research report.
Six countries, including Cameroon and Ethiopia, have explicitly banned crypto, while approximately two-thirds have implemented various restrictions. The Zimbabwean government has directed all banks to discontinue the processing of transactions related to cryptocurrency.
