Zambia tests technology for crypto regulation, says minister Mutati

The Bank of Zambia and the country's securities regulator are "testing technology" to enable regulation of cryptocurrencies, saying The Minister of Technology and Science, Félix Mutati, on the ministry's website. The country's move aims to "achieve an inclusive digital economy."

Speaking in the Zambian capital city of Lusaka, the minister stated that “cryptocurrencies are the future that the country wants to achieve”, but a policy framework is required to support this “revolutionary technology”. According to Mutati:

"[...] Testing of technology to regulate cryptocurrencies will be expanded in due course as part of deliberate steps to achieve an inclusive digital economy for Zambia."

The minister also stated that Zambia is striving to be a technology hub in Africa by developing digital infrastructure and attracting investment in the sector. According to the minister:

"[...] Through digital payment platforms, people will be much more included in digital financial services, therefore cryptocurrency will be a driver for financial inclusion and a game changer for the Zambian economy."

zambian government signed a Memorandum of Understanding (MoU) with Overstock's blockchain land registry subsidiary in 2018. Under the agreement, Overstock's Medici Land Governance (MLG) would work with Zambian authorities to reform land ownership, providing digital certificates of local rural ownership and access to the financial markets.

Authorities are paying close attention to cryptocurrencies in other African countries. A recent report from the Central Bank of Nigeria (CBN) calls for the development of a regulatory framework for stablecoins and initial coin offerings (ICOs). Nigeria is one of the world's early adopters of central bank digital currency (CBDC).

In November 2022, the International Monetary Fund (IMF) pushed for more regulation of African crypto markets, as the region's crypto industry continued to grow. Among the reasons for adopting the regulation, the monetary fund cited the collapse of FTX and its ripple effect on cryptocurrency prices.

The African crypto market surged more than 1,200% between July 2020 and June 2021, according to analytics firm Chainalysis, with Kenya, South Africa, Nigeria, and Tanzania leading adoption.