We Are Actively Exploring the Feasibility of Adopting a CBDC, Says Central Bank of Zimbabwe February 2022 Monetary Report

Photo of pinned Harare on a map of Africa. May be used as illustration for traveling theme.

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.

___________________________________________________________________

SEE ALSOWe Don’t Believe in Cryptocurrencies, Says Reserve Bank of Zimbabwe

___________________________________________________________________

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.

_____________

Read / Download the monetary policy statement here

___________________________________________________________________

RECOMMENDED READINGWe’re Gathering Views to Eventually Formulate Policies on Cryptocurrencies, Says Zimbabwe Government

___________________________________________________________________

Thank you for your support by helping us create content:

BTC address: 3CW75kjLYu7WpELdaqTv722vbobUswVtxT

ERC20 Address: 0xBc11cFa590C6CC465248D77d399C3106B881cC0E

SOL address: 9cC65AWFHj848kntcoyiT8av3jiRQEqyTTmBR1GvVUb

____________________________________________________________________

Follow us on Twitter for the latest posts and updates

Join and interact with our Telegram community

_____________________

Subscribe to our YouTube channel below for more updates:

_____________________________________________________________