Zimbabwe to Consider Adopting Cryptocurrencies as Legal Tender

The government of Zimbabwe is reportedly looking to adopt Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term as legal tender. According to Bulawayo24, the country is already consulting various businesses related to the industry to assess the possibility of legalizing cryptos in the nation, according to Charles Wekwete, the Permanent Secretary and Head of e-government Technology Unit in the Office of the President and Cabinet Brigadier General (Retired).

During a speech delivered at the Computer Society of the Zimbabwe (CSZ) information communication technologies (ICT) Summit, Wekwete commented that virtual currencies are still a topic that remains unclear for several nations globally and need to be addressed properly. “Governments are still trying to understand and properly trying to create policies on how to deal with it. In our case, initially, we were trying to understand their implication because they are a fundamental departure from previously known financial instruments, and there are a lot of fears about cross border movement of funds, Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term, externalization of funds, and illicit flow of funds to fund illicit issues,” he said.

He added that the government seeks to formulate some policies and establish a framework to make it possible for cryptos to be legal tender in Zimbabwe. In fact, Wekwete confirmed that the consultative process ‘is already underway’. However, he extended the invitation to the private sector to participate in the talks to bolster the assessment and better understand the technology behind cryptos.

Digital Economy Framework in Zimbabwe

“It brings into play all the necessary players, and within our sector, we have people who are knowledgeable. We have to put security in place, and it is our responsibility to share and showcase what can be done,” Allen Saruchera, CSZ President, commented on the matter.

In addition, Wekwete said that the country has adopted an initial framework based on the digital economy under its ‘National Development Strategy 1’, known as NDS1.

Finance Magnates reported in September that the total value of Africa’s crypto market jumped by nearly 1,200% between July 2020 and June 2021.