The Central Bank of Zimbabwe (Reserve Bank of Zimbabwe – RBZ) has said that it is actively exploring the feasibility of adopting a Zimbabwean central bank digital currency (CBDC) including specific design considerations, opportunities, and risks to the monetary and financial system.
In this context, RBZ is developing a clear roadmap for adopting CBDC, encompassing the feasibility and assessment stage currently taking place, policy design stage based on results of the feasibility study and implementation modalities.
According to the February 2022 monetary policy statement, the RBZ remains opposed to cryptocurrencies but open to innovations via its Fintech Regulatory Sandbox launched by the bank in March 2021.
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SEE ALSO: We Don’t Believe in Cryptocurrencies, Says Reserve Bank of Zimbabwe
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The policy also addressed the inflation levels saying annual inflation has declined from a peak of 837% in July 2020 to 50.3% in August 2021. However, there has been a slight resurgence closing the year at 60.7% as a result of the parallel exchange rates pass-through effects.
RBZ has also been in the lead promoting the use of interoperable digital payments and a cash-lite society which has seen average monthly growth of 21% and 16% in volumes and values in mobile money.
In December 2021, the Governor of Reserve Bank of Zimbabwe reiterated the bank’s stand on alternative digital payments saying they don’t believe in cryptocurrencies. At the same time, the government is in consultation with various private sector players to try and gather view to eventually formulate policies on cryptocurrencies.
The Zimbabwe Minister of Finance, Mthuli Ncube, recently visited DMCC Crypto Centre in Dubai, a UAE facility that says it is building the largest ecosystem for cryptographic, blockchain, and distributed ledger technologies in that country.
RBZ says it shall keep the public informed through periodic updates on the progress of the CBDC programme.
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Read / Download the monetary policy statement here
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RECOMMENDED READING: We’re Gathering Views to Eventually Formulate Policies on Cryptocurrencies, Says Zimbabwe Government
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