Zambia tests technology for crypto regulation, says minister Mutati
The Bank of Zambia and the country’s securities regulator are “testing technology” to regulate cryptocurrencies, Technology and Science Minister Felix Muthati said. announced on the website of the ministry. The country’s move aims to “achieve an inclusive digital economy.”
Speaking in the city of Lusaka, the capital of Zambia, the minister said that “cryptocurrency is the future that the country wants to achieve”, but a political basis is required to support this “revolutionary technology”. According to Mutati:
“[…] testing of crypto regulatory technology will be scaled up in due course as part of a deliberate effort to create an inclusive digital economy for Zambia.”
The Minister also said that Zambia aims to become a technology hub in Africa by developing digital infrastructure and attracting investment in this sector. According to the minister:
“[…] thanks to digital payment platforms, people will become much more involved in digital financial services, therefore, cryptocurrency will become a driver of financial inclusion and a factor influencing the economy of Zambia.”
In 2018, the Zambian government signed a memorandum of understanding with a blockchain-based land registry subsidiary, Overstock. Under the Medici Land Governance agreement, Overstock will work with the Zambian authorities to reform land ownership by providing local villagers with digital property certificates and access to financial markets.
Authorities are paying close attention to cryptocurrencies in other African countries as well. A recent report from the Central Bank of Nigeria calls for the development of a regulatory framework for stablecoins and initial coin offerings. Nigeria is one of the pioneers in the world in the introduction of digital currency by the central bank.
In November, the International Monetary Fund pushed for increased regulation of African crypto markets as the crypto industry in the region continued to grow. Among the reasons for the regulation, the Monetary Fund cited the collapse of FTX and its ripple effect on cryptocurrency prices.
The crypto market in Africa grew by more than 1,200% between July 2020 and June 2021, with Kenya, South Africa, Nigeria and Tanzania leading the way, according to Chainalysis.
Credit : cointelegraph.com