Zambia leads Africa in crypto adoption

Zambia is at the forefront of the pack thanks to its plans to complete tests on cryptocurrency legislation by the end of June. 

Felix Mutati, the minister of science and technology, indicated that the government aims to balance advancing technology and protecting its residents. The minister also stated that the testing findings would be used to draft legislation for using digital currencies.

In contrast to other adamant African nations, who have been reticent to accept digital currencies, Zambia is leading the way by modeling real-world use to establish its possible effect on its inhabitants and economy.

Africa is jumping into crypto

In December 2017, the Central African Republic became the first country to decriminalize bitcoin (BTC) and issue its cryptocurrency token. On the other side, Nigeria has taken a more cautious approach, as the country’s central bank has prohibited banks from managing bitcoin holdings.

As a result of the failure of the exchange FTX and other businesses, the value of cryptocurrencies witnessed a dramatic drop during the previous year. According to Mutati, however, they returned this year, leading to a greater desire to invest in Zambia. This trend has been seen.

The Chinese government is Zambia’s biggest creditor, owning around $5.7 billion of the country’s total foreign debt of approximately $18.6 billion. Some Western officials have leveled the accusation that China is dragging out the reorganization process. 

According to Mutati, the kind of Chinese loans agreed upon during his stint as finance minister between 2016 and 2018, which spanned from 2016 to 2018, varied depending on the project. For instance, the state power provider Zesco contacted China’s Sinohydro about the Kafue Lower Gorge hydropower project. A one-billion-dollar loan from the Export-Import Bank of China and the Industrial and Commercial Bank of China finances this project.

In addition, the government was the one that started the building of the new international airport in Lusaka. In contrast, Chinese business people were the ones who were responsible for the Chambishi economic zone. To create an exciting future for Zambia, the nation is concentrating on improving its digital infrastructure while maintaining a healthy balance between innovation and protecting its population.