Bank of Zambia is prophylactic towards cryptocurrency

Bank of Zambia and the country’s securities regulator are “testing technology” to enable the regulation of cryptocurrencies, said Technology and Science minister Felix Mutati on the ministry’s website. The country’s move aims to “achieve an inclusive digital economy.”

Speaking in the city of Lusaka, Zambia’s capital, the minister claimed that “cryptocurrency is the future that the country desires to achieve”, but a policy framework is required to support this “revolutionary technology.”

Mutati also revealed that the testing of the regulatory technology will soon be upscaled as part of measures to help Zambia attain an “inclusive digital economy. In addition, the minister said Zambia, which is seeking to become the region’s technology hub, is already putting in place the infrastructure needed to help the country achieve such a goal.

” While the Bank of Zambia has in the past discouraged the use of cryptocurrencies like bitcoin, the remarks by Mutati suggest that President Hakainde Hichilema’s government is embracing cryptos.

Meanwhile, the minister also claimed that Zambia has established itself as an investment destination of choice for many investors. “Zambia has created magnetism that attracts investments and it is one of the countries in Africa that is becoming a must-be place for investment,” Mutati said.

 Authorities are paying close attention to cryptocurrency in other African countries. A recent report from the Central Bank of Nigeria (CBN) urges the development of a regulatory framework for stablecoins and initial coin offerings (ICOs). Nigeria is one of the world’s pioneers in central bank digital currency (CBDC) adoption.

In November 2022, the International Monetary Fund (IMF) pushed for increased regulation of Africa’s crypto markets, as the region’s crypto industry continued to grow. Among the reasons for embracing regulation, the monetary fund cited the collapse of FTX and its ripple effect in cryptocurrency prices.