Zambia’s crypto regulation tests to be wrapped by June
- Regulatory tests aimed at developing crypto legislation in Zambia by simulating real-world use cases are to be completed by June.
- Zambia’s central bank and securities regulator began these tests on 19 February.
Cryptocurrency regulatory tests aimed at developing crypto legislation in Zambia by simulating real-world use of crypto are expected to be completed by June this year.
In a recent interview with Reuters, Zambia’s innovation, science, and technology minister Felix Mutati stated that the objective of the tests was to enable the government “see what would happen in the real world,” which would aid in the formation of crypto legislation. Zambia’s central bank and securities regulator began these tests on 19 February.
Mutati also said that the plan is to balance safety and innovation. He further stated:
“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.”
Furthermore, Mutati noted that digital IDs and other digital infrastructures must be built before cryptocurrencies can be introduced.
Zambia’s Crypto plans amidst post-Coronavirus debt restructuring
At the onset of the COVID-19 pandemic in 2020, Zambia was the first African country to default. In a separate report, the country’s treasury secretary Felix Nkulukusa stated that if the debt restructuring is delayed further, the country may lose the benefits of its macroeconomic reforms.
Additionally, Zambia’s debt restructuring process has been “long delayed,” with the majority of its debt owed to Chinese creditors.
On 19 February, Mutati declared that the country would be exploring technologies for cryptocurrency regulation. He stated that “through digital payment platforms, people will become much more included in digital financial services.”
He added that “cryptocurrency will be a driver for financial inclusion and a change maker for Zambia’s economy.
Moreover, many African countries have recently taken steps toward cryptocurrency adoption.
In April, the Central African Republic made Bitcoin legal tender with a regulatory framework for cryptocurrency use in the country. Despite outlawing cryptocurrencies, Nigeria wants to create a new law in the near future that will recognize cryptocurrency and other digital funds as capital for investment.