Zimbabwe moves to streamline regulatory framework for cryptocurrency

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The Zimbabwean government is aligning its financial system as the country opens discussions with cryptocurrency service providers to develop a regulatory framework for the nation’s crypto industry.

Consequently, the government formed a committee to gather insights from both local and international crypto businesses operating in Zimbabwe, to streamline operations with global trend of digital assets.

Specifically, Zimbabwe hopes to use the consultations to shape a regulatory environment that addresses the unique needs and conditions of the country.

According to Nick Mangwana, Zimbabwe’s Permanent Secretary for Information and Publicity, the deadline for submitting comments is June 26.

Mangwana emphasized the need to understand the full scope of the virtual assets ecosystem, especially as the government’s primary concerns include preventing cryptocurrencies from being used for illicit activities such as money laundering and terrorism financing.

According to him, “Given the anonymity and decentralization that characterize these digital assets, it is crucial to identify and mitigate any associated risks.”

The proposed regulatory structure seeks to balance innovation with the security and integrity of Zimbabwe’s financial system.

The initiative is part of the government’s broader strategy to leverage cryptocurrency to address economic challenges, including inflation and currency instability.

Last year, Zimbabwe introduced a gold-backed digital currency, Zimbabwe Gold (ZiG), despite warnings from the International Monetary Fund.

Clearly, the initiative has been successful, with ZiG now accepted as a payment method.

This move was aimed at stabilizing the economy, which has been plagued by hyperinflation and currency fluctuation over the past decade.

After reintroducing the Zimbabwean dollar in 2019 and facing renewed volatility, the government reverted to using the U.S. dollar last year to curb inflation.