With the rapid rise of cryptocurrencies and digital assets, regulating their use and trade has become a pressing issue around the world. From China to the United States, governments are scrambling to keep up with the rapidly evolving crypto industry.
Joining this trend, Zambia is now testing crypto regulation, with plans to wrap up the process in June. As the first African nation to default on its debt in 2020, Zambia is now striving to harness the potential of cryptocurrencies while ensuring the safety of its citizens.
Testing will be completed in June.
Felix Mutati, Zambia’s information technology minister, says that before introducing cryptocurrency, the nation requires digital identities and other essential digital infrastructure. Testing of cryptocurrency legislation that aims to help Zambia create cryptocurrency laws that mimic real-world cryptocurrency use is scheduled to end in June.
Felix Mutati, stated that the tests were being carried out to allow the government to “see what would happen in the real world” and to assist in the creation of cryptographic legislation.
“Our main objective in the area of cryptocurrencies is to strike a balance between innovation in terms of digital payments […] against the safety of citizens, particularly given that cryptocurrency is highly volatile.”
A penchant for investments in Zambia
Although Zambia’s debt restructuring process has been “long overdue” and most of its debt is owed to Chinese creditors, Mutati said investment in Zambia has not been discouraged.
In 2020, Zambia became the first African country to default on its debt amid the COVID-19 pandemic. Finance Secretary Felix Nkulukusa has warned that if the debt restructuring is not carried out promptly, the country could lose the benefits of its macroeconomic improvements.
Mutati believes that people will be much more integrated into digital financial services as a result of digital payment systems. The use of cryptocurrencies will promote financial inclusion and transform the Zambian economy.
Recently, numerous African nations have taken steps to adopt cryptocurrencies.
This post Zambia Begins Testing Crypto Regulations: How Will This Affect The Industry?
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