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- 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.
Felix Mutati, the Technology and Science minister, announced on the ministry’s website that the Bank of Zambia and the country’s securities regulator are working together to establish digital infrastructure and a policy framework for cryptocurrencies.
By “testing technology,” the country aims to regulate cryptocurrencies and create an inclusive digital economy.
Felix Mutati stated that Zambia has to govern this “revolutionary technology” because it represents “the future the country aspires to reach” in comments posted on the ministry’s website.
Meanwhile, the minister stated that Zambia has become a popular investment destination for a wide range of investors.
Once the envisioned digital payments infrastructure is in place, the minister views Bitcoin as a “driver for financial inclusion” as well as a “change-maker for Zambia’s economy.”
Zambia intends to do this using the yet-to-be-launched central bank digital currency, in addition to leveraging cryptocurrencies to boost the country’s financial inclusion objective (CBDC).
LATEST: Zambia tests #technology for crypto regulation, says minister Mutati
The Bank of Zambia and the country's #SEC are collaborating on digital infrastructure and a #policy framework for #crypto. #Zambia #BAFTA2023 #Web3 #nosis #cryptonews #NBAAllStar pic.twitter.com/DeUudBuMFs
— Nosis (@Nosis_official) February 20, 2023
Africa Warms Up to Cryptocurrencies
The Bank of Zambia has a history of being Non-friendly with cryptocurrencies such as Bitcoin (BTC), Mutati’s words signal that President Hakainde Hichilema’s administration is embracing the crypto industry.
The bank began exploring the benefits and drawbacks of utilizing a CBDC in February 2022, with a conclusion due in the fourth quarter of the previous year.
Other African countries are also closely monitoring the cryptocurrency space. The Central Bank of Nigeria recently issued a report calling for the establishment of a regulatory framework for stablecoins and initial coin offerings, signaling their increasing focus on the sector. Nigeria is at the forefront of central bank digital currency adoption globally.
Also Read: NIGERIA IS SET TO ADOPT DIGITAL CRYPTOCURRENCIES- MASS ADOPTION FOR ENAIRA?
As Africa’s crypto industry continues to expand, the International Monetary Fund (IMF) called for greater regulation of the region’s crypto markets in November. The IMF highlighted the FTX collapse and its impact on cryptocurrency prices as one of the reasons for advocating regulation.
