Zimbabwe is considering to adopt cryptocurrency as legal tender. It is the first time a government has made such an announcement, and it could have huge implications for crypto adoption in Africa.
The “Zimbabwe considers cryptocurrency as legal tender” is a recent news article that discusses the new crypto legislation in Zimbabwe. The country has decided to make cryptocurrency legal and has made it an official form of payment. Read more in detail here: is cryptocurrency legal.
According to local media, Zimbabwe’s government is contemplating making cryptocurrency legal money. According to Bulawayo24, the country’s Director of Information Technology and Communications, Charles Wekwete, said the government has started a discourse with all stakeholders on the issue.
Wekwete made the remark while addressing at the Computer Society of Zimbabwe (CSZ) Summit, which took place over the weekend. The utilization of digital technologies as a tool of post-pandemic rehabilitation was the conference’s main subject.
While much has been made about crypto’s role in “rescuing” the economy, the topic remains divisive. The weight of the argument against crypto having a role in financial infrastructure, on the other hand, will begin to wane as more governments warm to the notion.
El Salvador, as the first government to adopt Bitcoin as legal cash, kicked off a snowball effect, as economically downtrodden countries hunt for a better bargain elsewhere.
Zimbabwe has made cryptocurrency legal tender.
Wekwete was questioned about crypto acceptance and the growing trend toward digital payments at the CSZ Summit. He answered by adding that governments all across the globe are still attempting to grasp the concept of digital assets and the ramifications of approving their usage.
Policymaking surrounding crypto, according to Wekwete, is cautious and should not be hurried without first examining the repercussions, particularly in terms of crime.
“There are many concerns regarding cross-border money movement, money laundering, externalization of cash, and illicit monies flowing to finance unlawful activities.”
Wekwete said that the government is presently soliciting input on how to effectively build a national crypto strategy. However, discussions are underway, and a statement will be released as soon as possible.
“Government will make statements sooner or later,” she says, “but we haven’t gotten there yet; the consultative process is already underway.”
Africa is unconcerned with old infrastructure.
Africa, according to IOHK CEO Charles Hoskinson, will be the first location to see real crypto adoption. He went on to explain that this is due to the continent’s inadequate legacy infrastructure, which allows for newer, more equitable ideas to develop.
Crypto use in Africa increased 1,200 percent in the year to September, according to on-chain analytics company Chainalysis. This is attributed to those who use cryptocurrency to circumvent banking and exchange rate constraints.
The advantages of employing crypto are being recognized at the governmental level, given the difficulties faced by ordinary Africans.
Mthuli Ncube, Zimbabwe’s Finance Minister, stated last month that the fact that 30% of young people participate in cryptocurrency makes it unstoppable. As a result, he believes that the way ahead is to “control it correctly,” rather than seeking to limit its usage.
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