Zambia expects to complete tests that simulate real-world cryptocurrency usage by the end of June 2023 on its way to establishing regulations that balance citizens’ safety with innovation, the Zambian Minister for Science and Technology Minister, Felix Mutati, has said.
A team from the Ethereum Foundation meets the Minister of Science and Technology, ZambiaSpeaking to Reuters, Mutati also indicated that Zambia requires digital infrastructure, including digital identities, before cryptocurrencies can be introduced.
“Our main goal in the area of cryptocurrency is to strike a balance between innovation in terms of digital payments … against citizens’ safety, particularly given that cryptocurrency is very volatile,” Mutati said. “The central bank is simulating that to see what would happen in the real world. The results will assist us (in) the formulation of the regulation.”
In February 2023, the Science and Technology Minister revealed that the country, through the Security Exchange Commission and Bank of Zambia, were already testing technology to enable regulation of cryptocurrency in the country.
The lack of regulation has created a confusing environment for businesses and other operators in the country over the years.
In 2019, the Bank of Zambia (BoZ) suggested that there was need to revise the BoZ Act, since the crypto market developed well after the Act was instituted. Back then, the bank had put out a cautionary statement saying that ‘cryptocurrencies like bitcoin aren’t legal tender.’
In the same vein, the SEC said it had no jurisdiction over cryptocurrencies and digital assets.
“The fact of the matter is that, currently, these products/assets are not regulated by the Commission unless they meet the definition of a security as defined by the Act and this, as indicated, will be considered on a case by case basis,” said Philip Chitalu, the CEO of the Securities and Exchange Commision of Zambia.
Zambia is also reportedly exploring the pros and cons of a Central Bank Digital Currency and the exploration was supposed to be complete in Q4 2022.
_____________________________________
Follow us on Twitter for the latest posts and updates
Join and interact with our Telegram community
_____________________________________
_____________________________________
