Zimbabwe seeks public input to shape its cryptocurrency regulatory policy

Zimbabwe plans to regulate its cryptocurrency sector and encourages the public to come in line with global standards.
Successful implementation of cryptocurrency regulations could set a precedent for other countries facing similar economic challenges.
A committee has been set up to consult stakeholders and the deadline for feedback is 26 June.

Zimbabwe is set to introduce regulations for its emerging cryptocurrency sector, inviting public and industry stakeholders to participate in shaping the framework. With this initiative, the government wants to adapt to global trends and best practices in digital asset management.

According to local online media, the state-owned newspaper The Herald, reported on Wednesday that the Zimbabwean government is on track to regulate the country’s cryptocurrency industry. “In line with global trends and best practices, Zimbabwe is initiating activities to assess and understand the cryptocurrency landscape,” the report said.

The government calls on all cryptocurrency service providers and the public to provide their opinions and observations.

Zimbabwe, a landlocked country bordering South Africa, Botswana, Zambia and Mozambique, is home to approximately 16 million people. In recent years, the country has faced enormous financial challenges, which has led to a series of monetary reforms.

Last year Zimbabwe introduced gold-backed virtual token aimed at combating chronic financial instability. In April, the country introduced a new currency known as ZiG, short for Zimbabwe Gold, marking the sixth attempt to establish a stable local currency in 15 years.

The ZiG replaced the Zimbabwean dollar, which has fallen repeatedly since its reintroduction in 2019, exacerbating inflationary pressures.

The background to Zimbabwe’s economic turmoil dates back to 1999, when the country defaulted on its debts and was subsequently excluded from international capital markets.

Zimbabwe is currently working to restructure debt to various creditors worth approximately $19.2 billion, including $13 billion to international investors.

To lead efforts to regulate cryptocurrencies, the government of Zimbabwe has formed a committee to consult with stakeholders within the virtual asset ecosystem.

The government has set a deadline of June 26 to receive comments and suggestions from cryptocurrency operators and other interested parties.

The decision to regulate cryptocurrencies comes at a crucial time for Zimbabwe’s economy. By introducing a structured regulatory framework, the government aims to promote a safe and transparent environment for cryptocurrencies, potentially attracting investment and strengthening economic stability.

Given Zimbabwe’s volatile monetary policy history and the critical need for economic stability, the successful implementation of cryptocurrency legislation could play a major role in supporting the country’s financial sector.

The outcome of this initiative could set a precedent for other countries facing similar economic challenges and considering integrating cryptocurrencies into their financial systems.