Zimbabwe Eyes Crypto Regulation Amid Economic Instability
- A government committee has been formed to collect data from cryptocurrency companies.
- The country is making great efforts to stay up with the rising tide of crypto usage.
Crypto service providers in Zimbabwe and across the world are being sought out by the Zimbabwean government as they work on cryptocurrency sector regulations.
A Zimbabwean government committee has been formed to collect data from cryptocurrency companies providing services in the country with comments due by June 26, according to a post in The Zimbabwe Mail.
Tailored Regulatory Framework
Moreover, the initiatives declared goal is to acquire a thorough knowledge of Zimbabwes virtual assets ecosystem, according to Nick Mangwana, the Permanent Secretary for Information and Publicity. According to Mangwana, their goal is to assess the risks associated with the potential abuse of cryptocurrencies for illegal purposes such as money laundering and terrorist funding.
Developing a regulatory framework that is unique to Zimbabwe is a goal of the countrys administration. Finding a middle ground between encouraging innovation and protecting the stability of the nations financial system is the primary goal of this framework.
The country is making great efforts to stay up with the rising tide of crypto usage, which is especially noticeable in nations that are facing financial difficulties. Ignoring IMF concerns, Zimbabwe established a central bank-issued digital currency (CBDC) dubbed Zimbabwe gold (ZiG) in May of last year.
The government stated in October that the gold-backed digital currency may now be used as a payment mechanism, a testament to its success. Zimbabwe has been dealing with currency fluctuations and inflation for over a decade. After a hyperinflationary era, the country adopted the US dollar as its official currency in 2009.
In 2019, the Zimbabwean dollar was brought back by the government in an effort to revive the faltering economy. But then another period of extreme volatility occurred. Last year, the government decided to use the US dollar again in an attempt to rein down inflation.
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Read more: https://thenewscrypto.com/zimbabwe-eyes-crypto-regulation-amid-economic-instability/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
