Zambia Striving Hard To Regulate Cryptocurrency Sector

• It seems President Hakainde Hichilema’s administration is welcoming cryptocurrencies.
• Zambia is already putting in place the infrastructure required.

The minister of technology and science of Zambia, Felix Mutati, has said that the central bank and the Securities and Exchange Commission of Zambia are “testing” technologies to regulate cryptocurrencies. Mutati said on the ministry website that Zambia has to govern this “revolutionary technology” because it represents the future the nation aspires to reach.

Mutati also said that the regulatory technology testing would be ramped up as part of the initiatives to assist Zambia in achieving an “inclusive digital economy.” In addition, the minister said that Zambia is already putting in place the infrastructure required to assist the nation to realize its aim of being the technological center of the region.

Promoting Financial Inclusion Objectives

Mutati’s comments seem to indicate that President Hakainde Hichilema’s administration is welcoming cryptocurrencies like bitcoin, despite previous Bank of Zambia warnings to the contrary. Meanwhile, the minister said that Zambia has become a popular place for businesses to establish themselves.

Mutati stated:

“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.”

When the minister’s planned digital payments infrastructure is in place, he believes that cryptocurrencies would become the “driver for financial inclusion” and the “change-maker for Zambia’s economy.”

Zambia plans to promote its financial inclusion objective in several ways, including via the use of cryptocurrencies and the creation of a soon-to-be-introduced central bank digital currency (CBDC). Earlier last year, in February 2022, it was reported that the Bank of Zambia had begun weighing the benefits and drawbacks of adopting a CBDC.