The Reserve Bank of Zimbabwe (RBZ) has reportedly drafted a policy framework to guide operations of financial technology (fintech) enterprises, in particular cryptocurrency firms in the country.
Speaking at a recent Sound Prosperity Economic Forum, Mr. Josephat Mutepfa, RBZ deputy director financial markets and national payment systems, said proposed regulations for a regulatory sandbox would ensure crypto-currency companies that meet regulatory requirements would be vetted and allowed to operate:
“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.” ~ Mr Josephat Mutepfa
Speaking on the upcoming crypto regulatory sandbox and how it will operate, Mutepfa said:
“Once you enter the sandbox you either exist as a bonafide product to enter the market or you are guided to say that you need to partner a bank, a mobile money platform or your product needs to be licensed like a microfinance company.
The sandbox will be an experimenting zone. Once the sandbox is there, there will be an application criterion, which will also act in the same capacity as the sandbox.”
Mutepfa admitted that currency as a prerogative of central banks had been taken over by the digital currency which has resulted in reduced loans, a trend particularly fueled by the adoption of cryptocurrency among young people in the country.
Mutepfa highlighted one local cryptocurrency, SPURT, which has seen massive adoption across the country with an estimated customer base of over 50, 000.
He also noted that the government’s interpretation of the monetary policy into all the official languages was being reviewed in order to ensure a blossoming financial sector in the country.