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- Zimbabwe seeks public input on cryptocurrency regulations as it aims to develop policies for the virtual asset sector.
- A committee has been established to consult cryptocurrency operators in the country’s virtual asset ecosystem.
- The move comes as Zimbabwe grapples with financial instability, having recently launched a new currency and faced challenges with inflation.
Zimbabwe is gearing up to regulate cryptocurrency regulations, seeking public input to develop policies in the digital asset sector. In a statement published in the state-run Herald newspaper, the government revealed its intention to assess and understand the cryptocurrency landscape. inviting comments from all cryptocurrency service providers operating within or outside the country but offering services to Zimbabwean customers.In line with global practices, the government has established a committee to consult with operators and compile their comments by June 26. The move by the southern African nation reflects a shift in sentiment towards digital assets, once viewed as highly speculative and risky.
While many nations remain hesitant to formulate a clear regulatory framework, Zimbabwe’s efforts signal a willingness to address the complexities of the cryptocurrency market and establish regulations that balance innovation with consumer protection.
Moreover, digital assets offer a potential solution for financial instability in developing economies without relying on international aid. Zimbabwe, grappling with economic challenges since 1999 and burdened with $19.2 billion in debt, has struggled to stabilize its currency.
The nation’s financial regulators have taken extreme measures to revive its ailing economy, including multiple attempts to establish a functioning local currency over the past 15 years, amidst challenges like inflation and currency crashes. Last year, it launched a new currency, ZiG (Zimbabwe Gold), providing temporary relief from rising costs. Consumer prices reportedly fell 2.4% from April to May.
However, the impact was short-lived and did little to address the nation’s long-term financial woes, as inflation remained a concern, with April’s rate at 57.5%. In this context, digital assets could serve as a hedge against local currency depreciation. Furthermore, leveraging blockchain technology can enhance transparency, efficiency, and accountability in key sectors, fostering economic growth and development.
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