Zambia Takes Steps to Regulate Cryptocurrencies: Central Bank to Test Technology
• Zambia’s central bank and regulators are testing technology to regulate cryptocurrencies.
• Felix Mutati, Zambia’s Minister of Technology and Science, said that the country is putting in place the infrastructure required to help achieve this target.
• The Bank of Zambia has begun investigating the potential benefits and drawbacks of a Central Bank Digital Currency (CBDC).
Zambia Tests Technology To Regulate Cryptocurrencies
Zambia’s central bank and securities regulators are currently testing technology to regulate cryptocurrencies. Felix Mutati, Zambia’s Minister of Technology and Science, stated that the country is putting in place the infrastructure required to help achieve this target. As part of efforts to make financial inclusion more inclusive, cryptocurrency could be a game changer for its national economy.
Central Bank Digital Currency
The Bank of Zambia has begun investigating the potential benefits and drawbacks of launching a Central Bank Digital Currency (CBDC). The CBDC would have the ability to narrow the financial exclusion gap as well as reduce transaction costs. Before launching such a currency, it is important for the central bank to understand any findings from their studies first.
Mutati also noted that Zambia has established itself as a preferred investment destination for many investors. He commented on how it had created a magnetism that attracts investment – one which many African countries have failed to do so far.
Aspirations To Be A Tech Hub
Mutati also added that Zambia aspiresto become a regional technology hub with cryptocurrency being seen as revolutionary technology representing its future aspirations. Once they have put in place an envisioned digital payments infrastructure, they hope it will be able drive financial inclusion forward within their nation too.
Previous Discouragement Of Cryptocurrencies
Despite the ambitions outlined above by Mutati, previously the Bank of Zambiadiscouraged citizens from using cryptocurrencies like Bitcoin due to risks associated with them. This suggests that even though his administration may be warming up towards crypto assets, there is still some caution needed when approaching them in terms of regulation within their nation yet still today.