Zambia is testing technology for cryptocurrency regulation, according to minister Mutati.
The Central Bank of Zambia and the country’s securities regulator are collaborating on crypto infrastructure and a regulatory framework.
The Bank of Zambia and the country’s securities regulator are “testing technologies” to enable the regulation of cryptocurrencies, according to the website of the Ministry of Technology and Science. The nation’s action is intended to “create an inclusive digital economy.”
The minister stated in the capital city of Lusaka, Zambia, that “cryptocurrency is the future that the government wishes to reach “To enable this “revolutionary technology,” however, a policy framework is required. As said by Mutati:
“[…] the testing of the technology on regulating cryptocurrency will be upscaled in due course as part of deliberate measures to achieve an inclusive digital economy for Zambia.”
The minister also added that Zambia aims to become a technology hub in Africa through the development of digital infrastructure and the attraction of investments in the industry. As stated by the minister:
“[…] through digital payment platforms, people will become much more included in digital financial services hence, cryptocurrency will be a driver for financial inclusion and a change maker for Zambia’s economy.”
In 2018, the Zambian government reached an agreement with Overstock’s blockchain land registry business. Under the terms of the deal, Overstock’s Medici Land Governance would collaborate with Zambian authorities to reform land ownership, offering digital ownership certificates and access to the financial markets to rural Zambians.
In other African nations, authorities are paying close attention to cryptocurrencies. In a recent paper, the Central Bank of Nigeria suggested the creation of a regulatory framework for stablecoins and initial coin offers (ICOs). Nigeria is a pioneer in the deployment of central bank digital currency.
As the region’s crypto business continues to expand, the International Monetary Fund pressed for stronger regulation of Africa’s crypto exchanges in November. The international monetary fund highlighted the collapse of FTX and its rippling impact on cryptocurrency prices as one of the reasons for adopting regulation.
According to Chainalysis, the crypto market in Africa grew by more than 1,200% between July 2020 and June 2021, with Kenya, South Africa, Nigeria, and Tanzania dominating adoption.