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Regulatory tests for cryptocurrency in Zambia, designed to inform the development of crypto legislation by simulating real-world applications, are expected to conclude by June.
In an interview with Reuters on April 12, Felix Mutati, Zambia’s minister of innovation, science, and technology, explained that the aim of these tests is to enable the government to “observe what would occur in the real world,” thereby aiding in the creation of crypto regulations.
The central bank and securities regulator of Zambia initiated these tests on February 19, with Mutati indicating a focus on achieving a balance between safety and innovation:
“Our primary objective in the cryptocurrency sector is to find a balance between innovation in digital payments […] and the safety of citizens, especially considering the high volatility of cryptocurrency.”
Moreover, Mutati emphasized that the implementation of digital identities and other digital infrastructures is necessary before cryptocurrencies can be introduced.
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Despite the prolonged nature of Zambia’s debt restructuring process, with a significant portion of its debt owed to Chinese creditors, Mutati indicated that this has not discouraged investment in the country.
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“What we are witnessing is a growing interest in investing in Zambia.”
Zambia was the first nation in Africa to default at the onset of the COVID-19 pandemic in 2020. In a separate report by Reuters on April 12, treasury secretary Felix Nkulukusa warned that further delays in debt restructuring could jeopardize the progress made through macroeconomic reforms.
We continue engaging people on how we can achieve digital financial inclusion. pic.twitter.com/twoMnmI4BK
— Felix Chipota Mutati (@ChipotaFelix) April 6, 2023
When Mutati first announced the testing of technology for crypto regulation on February 19, he remarked that “through digital payment platforms, individuals will be significantly more included in digital financial services.”
He also noted that “cryptocurrency will serve as a catalyst for financial inclusion and a transformative force for Zambia’s economy.”
Several countries in the African region have recently taken steps toward adopting cryptocurrency.
The Central African Republic legalized Bitcoin as tender in April 2022, along with establishing a regulatory framework for cryptocurrency usage in the nation.
On December 18, it was reported that the Nigerian government intends to enact a new law soon that will recognize “cryptocurrency and other digital assets as capital for investment,” despite having banned crypto activities in 2021.
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