Zimbabwe regulates cryptocurrencies

Hardly any country in the world stands for hyperinflation as much as the country in southern Africa. After banning currency trading last year, Zimbabwe is now regulating cryptocurrencies – surprisingly kindly.The Zimbabwe Reserve Bank of Zimbabwe (RBZ) is working on a draft regulatory framework for FinTech and cryptocurrencies, according to the Zimbabwe Chronicle.The bank has warned the country’s citizens several times about cryptocurrencies because they are often used for fraud. But she must now recognize that it is not just a temporary hype, but a long-term phenomenon that needs to be regulated.

 

Growth of crypto economy

This is also reflected in the growth of the crypto economy in Zimbabwe.To this end, the central bank wants to create a cryptocurrency sandbox, a kind of economic playground where startups and companies can test business models without being too hard-nosed by regulation. At the same time, the sandbox should ensure that companies meet the regulatory requirements. Startups that make it into the sandbox should either be able to go directly to the market with their products or services or, in consultation with the regulators, find out whether they need a bank or other financial institution as a partner.