The Reserve Bank of Zimbabwe (RBZ) is interested in regulating digital currencies and has already started drafting a policy framework.
This move came weeks after India curbed the ban imposed by the reserve bank of India on banks and financial institutions preventing them from dealing with individuals and businesses dealing with cryptos.
Bitcoin has also been recently recognized as money in Germany and France while being officially made legal in South Korea.
Now, Zimbabwe is gearing up to regulate cryptocurrencies. Although the central bank has warned residents of deceitful actions while trading cryptos when using unregulated exchanges in the past, it has conceded that the reality is, this is becoming a trend and there is a need to regulate the space in the country, as per local media reports.
A Regulatory Sandbox
Zimbabwe has been recently witnessing a surge in demand for bitcoin and fintech growth in trading, payments, and insurance. Now, with regulations, the country’s officials want to ensure crypto companies are vetted. RBZ deputy director financial markets and national payment systems, Mr. Josephat Mutepfa, during a Sound Prosperity Economic Forum in Bulawayo on Friday said,
“We have already started to come up with a fintech framework because in regulation everything should be well structured. The framework, which is a regulatory sandbox, will be assessing the crypto-currency companies as to how they are going to operate.”
The sandbox he explained will be an “experimenting zone,” which will involve an application criterion. Entering the sandbox means the company will exist as a legitimate product or will be guided in forming a partnership with a bank, mobile money platform or will need to be licensed.
Helping Fintech Grow
The idea behind establishing the sandbox is the capital challenge the crypto market is facing. Mutepfa said,
“The crypto-currency market is largely tapped by the young generation and in most cases, they are facing challenges of having capital. The challenge is that in the past the currency was a prerogative of central banks although it has been taken over by the digital currency who also operate within the currency of the country, which, therefore, minimises loans coming forward.”
Meanwhile, the government has to deal with the,
“Interpretation of the monetary policy into all the official languages in order for the financial sector to blossom.”
This new development is a positive movement in the current fearful market running red with price losses and fear. These regulations, Brian Maseva, a business advisor at, local crypto-based trading consortium SPURT which has about 50,000 users said will help the crypto market grow. Maseva said,
“Meeting with the central bank will help us grow and attract the public to join the digital currency, which is fast taking over the financial sector. We are now aware that there is a policy, which elaborates more on fintech guidelines that we need to follow.”