In a U-turn which surprised many observers, the Reserve Bank of Zimbabwe, the country's central bank, announced that it is set to regulate cryptocurrencies after banning local banks from processing crypto payments in 2018.
According to the International Monetary Fund (IMF), the move comes in a bid to prevent an economic crisis in Zimbabwe with the central bank already someway down the road with the creation of a policy framework.
Dragon co-founder, Paul Moynan, said,
“the [crypto] market has transformed beyond all recognition since the early unregulated years, and we are on the cusp of seeing mass adoption for blockchain and digital currencies. With the current economic uncertainties experienced globally, many countries are now turning to digital currencies and seeking to apply regulation to reassure users and increase adoption further.”
Cryptocurrencies used in Zimbabwe are currently unregulated with the central bank issuing a strong statement at the end of 2017 warning of lack of legal protection. However, last week Josephat Mutepfa, deputy director of financial markets and national payment systems steered the conversation in a different direction.
Mutepfa said that they would be assessing how cryptocurrency companies will operate adding that, “you [the companies] either exist as a bonafide product to enter the market or you are guided to say that you need to partner a bank, a mobile money platform or your product needs to be licensed like a microfinance company."
With macroeconomic stability still in somewhat of a flux in Zimbabwe, it remains to be seen whether the introduction of crypto regulation will help the country of around 15 million people revive its economic situation, but with the increasing use of digital currencies globally we are surely on the cusp of the mass adoption of digital currencies. 2020 is set to be a fascinating time, and the Dragon Blog is the only place you need to visit for the latest Blockchain and cryptocurrency news from around the world.