Zambia’s crypto regulatory tests to be completed by June: Report
Cryptocurrency regulatory tests that aim to help shape crypto laws in Zambia that simulate the real-world use of crypto are on track to be completed by June.
In a Reuters interview on April 12, Zambia’s Minister of Innovation, Science and Technology, Felix Mutati, said the purpose of conducting the tests was to help the government “see what would happen in the real world,” to help to design crypto regulations.
Zambia’s central bank and securities regulator started the tests on February 19 which Mutati said were looking to balance safety and innovation:
“Our main goal in cryptocurrency is to strike a balance between innovation in digital payments […] against the safety of citizens, especially given that cryptocurrency is highly volatile.”
In addition, Mutati stated that before cryptocurrencies can be introduced, digital identities and other digital infrastructures must be implemented.
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Although Zambia’s debt restructuring process has been “long delayed”, with the largest portion of the debt owed to creditors from China, Mutati indicated that it has not deterred investment in Zambia.
“What we are seeing is increased appetite to invest in Zambia.”
Zambia was the first African country to default at the start of the COVID-19 pandemic in 2020. In a separate Reuters report on April 12, the country’s finance minister, Felix Nkulukusa, said the nation could lose the gains it made from its macroeconomic reforms if debt restructuring is further delayed .
When Mutati first announced that the country would test crypto-regulatory technology on February 19, he stated that “through digital payment platforms, people will be much more included in digital financial services.”
He added that “cryptocurrency will be a driver of financial inclusion and a change maker for Zambia’s economy.”
Many countries in the African region have made moves towards crypto adoption in recent times.
The Central African Republic made Bitcoin legal tender in April 2022, along with a regulatory framework for the use of cryptocurrency in the country.
It was reported on December 18 that the Nigerian government plans to pass a new law in the near future that would recognize “cryptocurrency and other digital funds as capital for investment,” despite banning crypto activity in 2021.
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