Zimbabwe has long been a hive of cryptocurrency trading. But aside from some rumors after the government banned forex trading in Oct 2019, bitcoin’s fate in this country has been someone uncertain. Not for much longer, though. At long last, the Reserve Bank of Zimbabwe (RBZ) has drafted a proposal to regulate cryptocurrency.
Zimbabwe Cryptocurrency Regulation – Not Ban
As we’ve seen from other countries struck by hyperinflation or excessive government intervention in monetary policy, Zimbabwe’s been through it all. Last July, there was a surge in cryptocurrency trading as the government banned foreign currencies.
At its height, Bitcoinist reported that BTC was trading at a staggering 600% premium on peer-to-peer trading platform LocalBitcoins. Shortly after, the government banned mobile cash and forex trading, but the decision on Bitcoin was yet to be taken.
Well, it seems that at last, Zimbabwe is ready to take cryptocurrency seriously and come up with sensible regulation. On Friday, the RBZ announced that it has started to put together a policy framework to give cryptocurrency businesses clear guidelines and to protect investors from scams that are prolific in this country.
The Trend Cannot Be Ignored
According to the Zimbabwe Chronicle, while the apex bank has been hesitant to legitimize cryptocurrency due to the high amount of fraudulent activity, it has finally come to realize that the growing global trend can no longer be ignored–and that it must be regulated.
From fintech to insurance, payments, and trading, many alternatives to traditional banking are emerging alongside cryptocurrencies. These will all be given a clear framework to work from as well.
RBZ deputy director of financial markets and national payment systems Josephat Mutepfa commented:
We have already started to come up with a fintech framework because in regulation everything should be well structured.