The Zimbabwean government is taking steps to regulate the country’s cryptocurrency industry, seeking input from both local and international cryptocurrency service providers. According to a report in The Zimbabwe Mail, a committee has been established to gather information from crypto businesses operating in Zimbabwe, with a deadline of June 26 for comments.
Nick Mangwana, the Permanent Secretary for Information and Publicity, stated that the goal of this initiative is to gain a comprehensive understanding of Zimbabwe’s virtual assets ecosystem. The government aims to assess the risks associated with cryptocurrencies being used for money laundering, terrorism financing, and other illicit activities.
The regulatory framework being developed will be tailored to Zimbabwe’s specific needs and conditions, focusing on balancing innovation with the security and integrity of the financial system. This move comes as Zimbabwe looks to keep pace with the increasing adoption of cryptocurrencies, particularly in countries facing financial challenges.
In May last year, Zimbabwe introduced a central bank-issued digital currency backed by gold called Zimbabwe gold (ZiG), despite warnings from the International Monetary Fund. The success of this gold-backed digital currency led to its approval as a payment method in October.
Zimbabwe has been grappling with inflation and currency fluctuation for over a decade, with the nation switching to the U.S. dollar in 2009 to combat hyperinflation. The reintroduction of the Zimbabwean dollar in 2019 led to further economic instability, prompting a return to the U.S. dollar last year to control inflation.
As the government works to regulate the cryptocurrency industry, it is clear that Zimbabwe is exploring innovative solutions to mitigate its financial woes and foster economic stability.