The Zimbabwean government has asked for public input from stakeholders as it tries to develop regulations for the use of cryptocurrency in the country.
According to a Bloomberg report, the government announced on Wednesday, June 12, that all cryptocurrency service providers, both domestic and international, offering services to Zimbabwean customers should submit comments and suggestions concerning their operations in the country.
The government has reportedly created a committee to gather these comments and extract insights. This committee will also consult with digital asset service operators in the industry as part of the country’s efforts to develop a robust regulatory framework. Concerned stakeholders are expected to submit their comments by June 26.
Zimbabwe’s call for input on cryptocurrency regulation reflects a broader trend on the African continent, which is increasingly seen as a promising market for cryptocurrency adoption and innovation. However, the approach to cryptocurrency regulation varies significantly across the continent. For instance, Nigeria’s stance on cryptocurrency has faced criticism, exemplified by the detention of Binance executive Tigran Gambaryan, despite substantial pushback from US lawmakers.
Additionally, Zimbabwe’s decision to regulate cryptocurrency comes as the nation continues to face economic challenges. The nation’s struggle with financial instability led to the government issuing a gold-backed virtual token last year despite warnings from the International Monetary Fund not to do so.
In April 2024, the new currency, ZiG (Zimbabwe Gold), officially replaced the Zimbabwean dollar, which had experienced multiple crashes since its reintroduction in 2019. This move marked the country’s sixth attempt in 15 years to establish a stable local currency to address the rampant inflation experienced in the country.
The country’s economic difficulties are further compounded by its exclusion from international capital markets since 1999 following a default on its debts. Zimbabwe is currently trying to reorganise approximately $19.2 billion in debt owed to creditors, including $13 billion to international investors.
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