News / National
Zimbabwe's banks not ready for cryptocurrency
23 Jun 2024 at 05:40hrs | Views
At the inaugural Capital Markets Conference in Nyanga, it was disclosed that Zimbabwean banks are not yet prepared to fully integrate cryptocurrency trading, despite ongoing efforts by regulators to develop a framework for its adoption in the local market. The Securities and Exchange Commission of Zimbabwe (SecZim) and the Reserve Bank of Zimbabwe (RBZ) are collaborating on this framework to facilitate the trading of virtual assets, which encompass digital representations of value used for payment or investment.
Cryptocurrencies, digital tokens, non-fungible tokens (NFTs), and other digital assets are part of this evolving market. Previously, the RBZ had banned cryptocurrencies in Zimbabwe, but due to the global market's growth to a valuation of US$2.42 trillion, regulators are now reconsidering their stance.
Fanwell Mutogo, CEO of the Bankers Association of Zimbabwe, emphasized that local banks are still in the research phase and not ready to fully embrace cryptocurrency trading and investment services. He noted the RBZ's interest in digital currencies, citing the introduction of a gold-backed digital token as an example.
Ranga Makwata, a financial analyst, highlighted the significant potential for widespread cryptocurrency adoption in Zimbabwe, driven by economic instability and the population's interest in digital currencies as alternatives to the volatile local currency. He identified regulatory uncertainty, limited infrastructure, and low financial literacy as barriers to full-scale adoption.
Makwata urged the RBZ and SecZim to establish a clear regulatory framework to provide legal certainty, consumer protection, and guidelines for the legitimate use of virtual assets. He stressed the importance of increasing public financial literacy, enhancing digital and financial infrastructure, fostering collaboration between traditional financial institutions and crypto platforms, and implementing robust cybersecurity measures to support the adoption of cryptocurrencies for economic growth, financial inclusion, and technological innovation in Zimbabwe.
Cryptocurrencies, digital tokens, non-fungible tokens (NFTs), and other digital assets are part of this evolving market. Previously, the RBZ had banned cryptocurrencies in Zimbabwe, but due to the global market's growth to a valuation of US$2.42 trillion, regulators are now reconsidering their stance.
Ranga Makwata, a financial analyst, highlighted the significant potential for widespread cryptocurrency adoption in Zimbabwe, driven by economic instability and the population's interest in digital currencies as alternatives to the volatile local currency. He identified regulatory uncertainty, limited infrastructure, and low financial literacy as barriers to full-scale adoption.
Makwata urged the RBZ and SecZim to establish a clear regulatory framework to provide legal certainty, consumer protection, and guidelines for the legitimate use of virtual assets. He stressed the importance of increasing public financial literacy, enhancing digital and financial infrastructure, fostering collaboration between traditional financial institutions and crypto platforms, and implementing robust cybersecurity measures to support the adoption of cryptocurrencies for economic growth, financial inclusion, and technological innovation in Zimbabwe.
Source - the standard
