The Bank of Zambia (BoZ) alongside the country’s Securities and Exchange Commission is developing technology to regulate crypto, according to the country’s minister of Technology and Science, Felix Mutati.
Mutati remarks that “cryptocurrency is the future the country desires to achieve.” However, a policy framework is needed to regulate this “revolutionary technology.”
In the published announcement, Mutati states that the testing will soon be upscaled to help Zambia ensure an “inclusive digital economy,” mentioning that the government targets to reach over $4.7 million in terms of digital payments, which will help bridge the financial exclusion gap in Zambia.
Speaking in Lusaka, the capital city, the minister also shared Zambia’s aim to become a technology hub in Africa. “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,” said Mutati.
“Zambia is not the first African country to put an emphasis on crypto and blockchain technology. The African continent is booming and countries will need to keep up with the growing market,” said Abhi – Head of Marketing MENA “Zambia is full of potential and it is great seeing them take initiative.”
Previously, the Zambia government signed a memorandum of understanding in 2018 with Overstock’s blockchain land registry subsidiary to restructure land ownership by providing digital ownership certificates.
In 2022, the BoZ shared its plans to conduct research on launching a CBDC, hoping to cut transaction costs and increase citizen participation. The research was expected to end in the last quarter of 2022.
Regulators in other African countries are also looking to establish better frameworks for cryptocurrency. Nigeria, one of the first countries to adopt CBDCs, presented in December its plans to regulate cryptocurrency to better “flow with global economic innovations”.
More recently, The Central Bank of Nigeria published a report titled “Nigeria Payments System Vision 2025” to create a legal framework surrounding stablecoins and ICOs.
In November, the International Monetary Fund called for tighter crypto regulation in Africa, considering the immense market growth on the continent. The collapse of FTX and its ripples throughout the industry was cited as one of the major reasons for this push.
“Investor security is clearly on the minds of Zambia and other African authorities minds. We hope that all investors can have the protection that they deserve.” Abhi added.
Disclaimer: This is a paid post and should not be treated as news/advice.