Current Situation in Zimbabwe regarding Crypto Regulation
Zimbabwe is currently seeking public feedback on crypto regulation as it works towards integrating emerging technologies into its economic framework. The government has invited cryptocurrency service providers, including both domestic and international entities, to submit their comments by Jun. 26. This move comes as Zimbabwe looks for new ways to boost its economy after being excluded from international capital markets since 1999 due to defaulting on debt obligations.
Zimbabwe’s Use of Digital Tokens to Stabilize Economy
In an effort to stabilize its economy, Zimbabwe issued its first digital token backed by gold in 2023. Following this, the country introduced a new currency, ZiG, in April this year to address high inflation rates. Despite historical caution from the Reserve Bank of Zimbabwe regarding crypto, the issuance of the gold-backed token and the launch of ZiG show a shift towards exploring digital solutions to economic challenges.
Status of Crypto Regulations in Africa
A research report by the International Monetary Fund revealed that only one-quarter of countries in sub-Saharan Africa have formal regulations for cryptocurrencies. While approximately two-thirds have implemented restrictions, six countries, including Zimbabwe, have banned crypto altogether. In response, the Zimbabwean government has directed banks to stop processing crypto-related transactions.
