In a move to regulate the crypto industry in Zambia, the government has begun testing new technology, according to an announcement from Technology and Science minister Felix Mutati.
Zambia’s securities regulator and the Bank of Zambia are the primary drivers of this development. Both parties are working together to ensure the functionality of the policy framework and infrastructure for digital currency regulations.
Mutati stated that the technology would allow the Bank of Zambia (BoZ) to supervise and test crypto-related services before entering the market. Also, this new technology will help the central bank to establish a regulatory framework for the cryptocurrency industry.
Mutati suggests that the technology will help the Bank of Zambia better understand how the cryptocurrency industry operates and how to regulate it effectively. He believes that the government recognizes the importance of the industry and wants to ensure proper regulation to protect consumers and investors.
Mutati claims digital currencies are the future of Zambia’s financial space, an achievement the country still desires to gain. This is where the policy framework comes in, as it will facilitate revolutionary technology. Furthermore, the minister noted that this recent government effort is to ensure that Zambia becomes a digital currency technology hub throughout Africa.
The Technology and Science minister also cited that the government is working with the private sector to establish the regulatory framework for the industry. This aligns with its efforts to attract investment and promote economic growth in the country.
Africa On The Move To Become A Crypto Hub
Africa has seen significant growth in crypto adoption in recent years, and Zambia is no exception to this growing trend. Moreover, more people are turning to cryptocurrencies as a way to store value and make transactions. Zambia government’s move to regulate the industry comes as a response to the growing demand and the need to protect investors and consumers from potential risks associated with cryptocurrencies.
Before now, the Zambia government signed an agreement with a blockchain subsidiary (Overstock) in 2018. The essence was collaborating with the Zambian authorities to restructure land ownership by providing digital ownership certificates through a blockchain-based land titling program.
Meanwhile, other authorities are more interested in digital currencies in several African countries. An example is the CBN (Central Bank of Nigeria) considering creating a regulatory framework for initial coin offerings (ICOs) and stable digital tokens (stablecoins).
Furthermore, the IMF (International Monetary Fund) showed interest in Africa’s digital currency market regulation in November 2022. This move came in response to the continuous growth in the crypto industry of the region.
Meanwhile, the move by the Zambian government to test new technology for regulating the cryptocurrency industry demonstrates a commitment to security in the crypto space. The development will also provide a clear regulatory framework for the sector and increase investor confidence, leading to increased investment in the country.
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