The Zimbabwe Reserve Bank will settle cryptocurrencies after a 20-month ban
The Reserve Bank of Zimbabwe announced to regulate cryptocurrency in the country after it announced a banking ban in May 2018.
The Reserve Bank of Zimbabwe had prohibited banks from processing crypto payments back in 2018, but the central bank is now preparing to implement new crypto regulations in the country. According to local reports, the central bank has already started drafting a policy framework to guide operations of crypto firms in the country.
Regulators will assess how crypto companies will operate.
Josephat Mutepfa, deputy director of financial markets and national payment systems at the Reserve Bank of Zimbabwe, noted that the country has already started to come up with a fintech framework because, in regulation, everything should be structured. He added that the framework, which is a regulatory sandbox, will be assessing the crypto companies as to how they will operate.
While speaking at the Sound Prosperity Economic Forum in the Bulawayo city on Friday, Mutepfa informed that once a company enters the sandbox, it exists as a bonafide product to enter the market, or it is asked to partner with a bank, or a mobile money platform.
Zimbabwe is facing a humanitarian and economic crisis.
In February, the International Monetary Fund reported that the African country, Zimbabwe is facing an economic and humanitarian crisis as the country continues to battle inflation and food shortages. The country witnessed one of the worst hyperinflation in the world in 2008, and it still has not recovered. Allowing cryptocurrency in the country could help people avoid national currency and use bitcoin and other digital currencies to fight hyperinflation.