Bank of Zambia Strives to Pilot Technology for Crypto Regulation, Says Government Minister

• Minister Felix Mutati reveals that the Bank of Zambia and the country’s securities regulator are testing technology to regulate cryptocurrencies.
• An array of factors, from political repression to currency controls and rampant inflation, have fuelled the stunning rise of crypto assets in Africa.

Zambia to Regulate Cryptocurrencies

The Zambian government is taking steps to regulate cryptocurrencies. The country’s Technology and Science minister, Felix Mutati, has announced that the Bank of Zambia and the country’s securities regulator are working together to establish digital infrastructure and a policy framework for cryptocurrencies.

Mutati said that Zambia needs to regulate cryptocurrencies because they represent “the future the country aspires to reach.” He added that the government plans to use cryptocurrencies to boost financial inclusion and create an inclusive digital economy.

The minister also said that Zambia is currently putting in place the infrastructure needed to become a regional technology hub. He said that the country has become a popular investment destination for a wide range of investors.

Mutati’s announcement comes as other African countries are also considering regulating cryptocurrencies. The Central Bank of Nigeria recently issued a report calling for the establishment of a regulatory framework for stablecoins and initial coin offerings. Nigeria is at the forefront of central bank digital currency adoption globally.

The International Monetary Fund (IMF) has also called for greater regulation of Africa’s crypto markets. The IMF highlighted the FTX collapse and its impact on cryptocurrency prices as one of the reasons for advocating regulation.

It remains to be seen how Zambia’s regulatory framework will be implemented. However, the government’s willingness to embrace cryptocurrencies is a positive sign for the industry.