Zimbabwe to Consider Adopting Cryptocurrencies as Legal Tender

Zimbabwe to Consider Adopting Cryptocurrencies as Legal Tender

The government is already having talks with some members of the crypto industry to assess the matter.

The government of Zimbabwe is reportedly looking to adopt cryptocurrencies as legal tender. According to Bulawayo24, the country is already consulting various businesses related to the industry to assess the possibility of legalizing the cryptos in the nation, according to Charles Wekwete, Permanent Secretary and Head of e-government Technology Unit in the Office of the President and Cabinet Brigadier General (Retired).

During a speech delivered at the Computer Society of Zimbabwe (CSZ) information communication technologies (ICT) Summit, Wekwete commented that virtual currencies are still a topic that remains unclear for several nations globally and need to be addressed properly. “Governments are still trying to understand and properly trying to create policies on how to deal with it. In our case, initially, we were trying to understand their implication because they are a fundamental departure from previously known financial instruments, and there are a lot of fears about cross border movement of funds, money laundering, externalization of funds, and illicit flow of funds to fund illicit issues,” he said.

He added that the government seeks to formulate some policies to establish the framework to make the cryptos a legal tender possible in Zimbabwe. In fact, Wekwete confirmed that the consultative process ‘is already underway.’ However, he extended the invitation to the private sector to participate in the talks to bolster the assessment and better understand the technology behind cryptos.

Digital Economy Framework in Zimbabwe

“It brings into play all the necessary players, and within our sector, we have people who are knowledgeable. We have to put security in place, and it is our responsibility to share and showcase what can be done,” Allen Saruchera, CSZ President, commented on the matter.

Wekwete also said that the country adopted an initial framework based on the digital economy under its ‘National Development Strategy 1,’ known as NDS1.

Finance Magnates reported in September that the total value of Africas crypto market jumped by nearly 1,200% between July 2020 and June 2021.