The Zimbabwean government is currently in the process of developing regulations for the cryptocurrency industry in the country and is seeking input from both local and international cryptocurrency service providers.
As reported by The Zimbabwe Mail, a committee has been established by the government to gather information from crypto businesses operating in Zimbabwe, with a deadline for comments set for June 26.
The goal of this initiative, according to Nick Mangwana, the Permanent Secretary for Information and Publicity, is to gain a thorough understanding of Zimbabwe’s virtual assets ecosystem. The aim is to assess the risks associated with cryptocurrencies being used for illicit activities such as money laundering and terrorism financing.
The government of Zimbabwe is looking to create a regulatory framework that is tailored to the specific needs and circumstances of the country. This framework will prioritize striking a balance between promoting innovation and ensuring the security and stability of the country’s financial system.
In line with this effort, Zimbabwe’s central bank issued a gold-backed digital currency called Zimbabwe gold (ZiG) in May last year, despite warnings from the International Monetary Fund. The success of this gold-backed digital currency led to the government announcing in October that it could now be used as a payment method.
Zimbabwe has been grappling with financial challenges for over a decade, including inflation and currency fluctuations. After a period of hyperinflation, the country adopted the U.S. dollar as its official currency in 2009. The government reintroduced the Zimbabwean dollar in 2019 in an attempt to revive the economy, but this move was followed by another round of high volatility. Last year, the decision was made to return to using the U.S. dollar in order to stabilize inflation.
Meanwhile, in Senegal, the use of Bitcoin has been gaining popularity. This African country has been embracing BTC, but the reasons behind this adoption remain unclear.