- The Zambian central bank and securities regulator are currently testing the technology to regulate cryptocurrencies.
- The country is already creating the necessary infrastructure to help achieve this goal.
Zambia’s central bank and securities regulator are testing technology to regulate cryptocurrencies, a Zambian government minister has said.
Felix Mutati, Minister of Technology and Science of Zambia, Saying that the country’s central bank and the Securities and Exchange Commission are working on testing technology to regulate cryptocurrencies.
The minister recently remarked that cryptocurrency is a revolutionary technology that represents the future that his country aspires to achieve.
Mutati’s aspirations
Mutati also said regulatory technology testing will soon be ramped up as part of efforts to help Zambia achieve an inclusive economy.
In addition, the minister said that Zambia, which aspires to become the technology hub of the region, is already building the necessary infrastructure to help the country achieve this goal.
Although the Bank of Zambia has previously advised against the use of cryptocurrencies such as bitcoin, Mutati’s comments suggest that President Hakinde Hichilema’s administration is warming up to cryptocurrencies.
Mutati said that Zambia has established itself as a preferred investment destination for many investors. He further said that the country has created a magnetism that attracts investment, and it is one of the few African countries that has done so.
What are your thoughts about the future?
Instead of the digital payments infrastructure once envisioned, the minister sees cryptocurrencies as a driver for financial inclusion, as well as a game changer for the national economy.
Zambia hopes to achieve this through a yet-to-be-launched central bank digital currency, as well as using cryptocurrencies to advance the country’s financial inclusion (CBDC) agenda.
Formerly Bank of Zambia began Examine the benefits and drawbacks of using a CBDC, with findings expected in the fourth quarter of last year.
The bank wanted to launch a CBDC because it believes it has the potential to close the financial exclusion gap and reduce transaction costs. However, before launching a CBDC, the central bank said it needed to understand the study’s findings.
