Zimbabwe asks for public comments to create crypto framework

Zimbabwe is seeking public comments on crypto regulation as the country aims to integrate emerging tech into its economic framework.

Zimbabwe has called for public feedback on crypto operations as it crafts a policy framework for the burgeoning sector, Bloomberg reports, citing a government statement published in a state-run newspaper.

The government reportedly wants to “assess and understand” the cryptocurrency landscape by “inviting all cryptocurrency service providers,” both domestic and international, who offer services to Zimbabwean customers to submit their comments by Jun. 26. To facilitate the assessment, the government has established a committee to engage with operators within the crypto ecosystem.

Since 1999, Zimbabwe has been excluded from international capital markets due to its default on debt obligations. As a result, the country now seeks new ways to boost its economy.

In 2023, the country issued its first digital token backed by gold in a bid to stabilize its economy after years of financial turmoil. In April this year, the African country introduced another currency, ZiG in its sixth attempt to stabilize the monetary system amid high inflation rates. The new currency replaced the Zimbabwean dollar, which had experienced multiple crashes since its reintroduction in 2019, exacerbating inflation.

Although the Reserve Bank of Zimbabwe has historically been cautious about crypto, emphasizing the need to protect consumers and the financial system, the issuance of the gold-backed token and the launch of ZiG indicate a shift towards exploring digital solutions to economic challenges.

As the International Monetary Fund noted in a research report, only one-quarter of countries in sub-Saharan Africa have formal regulations for cryptocurrencies. Approximately two-thirds have implemented various restrictions, while six countries, including Cameroon and Ethiopia, have outright banned crypto. In Zimbabwe, the government has ordered all banks to cease processing crypto-related transactions.