The Bank of Zambia and the country’s securities regulator are “testing technology” to enable the regulation of cryptocurrencies, Technology and Science Minister Felix Mutati said on the ministry’s website. The country’s move is aimed at “founding an inclusive digital economy.”
Speaking in the city of Lusaka, the capital of Zambia, the minister stated that “cryptocurrency is the future that the country wants”, but a policy framework is needed to support this “revolutionary technology”. According to Mutati:
“[…] Technological testing of cryptocurrency regulation will be stepped up as part of deliberate steps to achieve an inclusive digital economy for Zambia.
The minister also stated that Zambia is striving to become a technology hub in Africa by developing digital infrastructure and attracting investment in the sector. According to the minister:
“[…] through digital payment platforms, people will become more included in digital financial services therefore, cryptocurrency will be a driver for financial inclusion and change for the Zambian economy.
The Zambian government signed a Memorandum of Understanding (MoU) with Overstock’s blockchain land registry subsidiary in 2018. Under the agreement, Overstock’s Medici Land Governance (MLG) will work with Zambian authorities to transform land ownership, provide local rural digital ownership certificates and access to financial markets. .
Authorities are paying attention to cryptocurrency in other African countries. A new report from the Central Bank of Nigeria (CBN) urges the development of a regulatory framework for stablecoins and initial coin offerings (ICOs). Nigeria is one of the pioneers in the world in the adoption of central bank digital currency (CBDC).
In November 2022, the International Monetary Fund (IMF) is pushing for the regulation of the African crypto market, as the crypto industry in the region continues to grow. Among the reasons for implementing regulation, the monetary fund cited the collapse of FTX and the ripple effect on cryptocurrency prices.
The African crypto market increased by more than 1,200% between July 2020 and June 2021, according to analytics company Chainalysis, with Kenya, South Africa, Nigeria, and Tanzania adopting it.