According to Zambia Tech Minister Felix Mutati, the country needs digital identities and different necessary digital infrastructures before it introduces crypto.
Cryptocurrency rule tests aiming to help shape crypto laws in Zambia that simulate the real-world use of crypto are on track to finalize by June.
In an April 12 Reuters interview, Zambia’s innovation, science, and technology minister, Felix Mutati, told the purpose of conducting the tests was to support the government “ see what would be in the real world, ” to help in forming crypto regulations.
Zambia’s central bank and securities regulator commenced the tests on Feb. 19, which Mutati spoke was looking to balance safety and innovation:
“Our main goal in the area of cryptocurrency is to strike a balance between innovation in terms of digital payments [...] against citizens’ safety, particularly given that cryptocurrency is very volatile.”
Also, Mutati stated that before cryptocurrencies can be introduced, digital individualities and other digital architectures need to be enforced.
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Although Zambia’s debt restructuring operation has been “ long delayed, ” with the largest portion of its debt owed to creditors from China, Mutati suggested it hasn’t deterred investment in Zambia.
“What we are seeing is increased appetite to invest in Zambia.”
Zambia was the initial African country to default at the start of the COVID-19 pandemic in 2020. In a separate April 12 Reuters report, the country’s treasury secretary, Felix Nkulukusa, told that the nation could lose the gains it achieved from its macroeconomic reforms if the debt restructuring is delayed further.
When Mutati initially announced the country would be testing technology for crypto regulation on Feb. 19, he stated that “ through digital payment platforms, people will become much further included in digital financial services. ”
He added that “ cryptocurrency will be a driver for financial inclusion and a change maker for Zambia’s economy. ”
Numerous countries in the African region have made moves toward crypto adoption in recent times.
The Central African Republic made Bitcoin a legal tender in April 2022, along with a regulatory framework for the use of cryptocurrency in the country.
It was reported on Dec. 18 that the Nigerian government plans to pass a new law in the near future that will recognize “ cryptocurrency and different digital funds as capital for investment, ” despite banning crypto activity in 2021.
(CIARAN LYONS, Cointelegraph, 2023)