The Zimbabwean government is in the process of developing regulations for the cryptocurrency industry in the country and is seeking input from both local and international cryptocurrency service providers.
A report in The Zimbabwe Mail stated that the government has formed a committee to gather information from crypto businesses operating in Zimbabwe, with a deadline for comments set for June 26.
The goal of this initiative, according to Nick Mangwana, the Permanent Secretary for Information and Publicity, is to gain a thorough 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.
Zimbabwe is looking to create a regulatory framework that is tailored to the specific needs and conditions of the country. This framework will focus on finding a balance between promoting innovation and ensuring the security and stability of the country’s financial system.
In an effort to address its financial challenges, Zimbabwe is keeping up with the global trend of cryptocurrency adoption. The country introduced a gold-backed digital currency called Zimbabwe gold (ZiG) last year, despite warnings from the International Monetary Fund.
The success of the gold-backed digital currency led the government to announce in October that it could now be used as a payment method. Zimbabwe has been grappling with inflation and currency fluctuations for over a decade. After a period of hyperinflation, the country adopted the U.S. dollar as its official currency in 2009.
In 2019, the government reintroduced the Zimbabwean dollar to stimulate the economy, but this move was followed by another round of high volatility. Last year, the administration decided to return to using the U.S. dollar in an attempt to control inflation.
In other news, Bitcoin is gaining popularity in Senegal, with the African country embracing the use of BTC.