Zimbabwe is preparing to officially adopt cryptocurrencies as acceptable legal currency amid the continuing financial crisis fueled by exchange rate volatility and cash shortages.
President Emmerson Mnangagwa's administration has announced that it is advising on cryptocurrency mechanisms to ease payments and currency problems.
Although other governments "are still trying to understand and create policies on how to deal” with cryptocurrencies, Zimbabwe is now “trying to understand their implications because they are a fundamental departure from previously known financial instruments.“, said Charles Wekwete, head of e-government technology within Mnangagwa's cabinet.
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Speaking at the Zimbabwe Computer Society Summit held recently in Victoria Falls, Wekwete said that although regulators have expressed concern about the cross-border movement of funds, money laundering, externalization of funds and “illicit flow of funds to finance illicit affairs“Zimbabwe now consults on the adoption of cryptocurrencies.
“So the government put in place a mechanism to try to bring together views from various sectors of society to eventually formulate policies. Sooner or later, the government will make statements, but we're not there yet. consultative process is already underway,” said Wekwete.
The southern African country is among several regional markets – including Nigeria, Kenya and South Africa – where cryptocurrencies such as bitcoin e Stablecoins are widely used. Bitcoin trading and purchases in Zimbabwe are mainly through peer-to-peer platforms, while Stablecoins are used as a source of investment given the volatility of Zimbabwe's local currency.
