HARARE โ During the inaugural Capital Markets Conference in Nyanga, it was revealed that Zimbabwean banks are not yet ready to fully integrate cryptocurrency trading into their services, despite continued efforts by regulators to establish a framework for their adoption in the local market.
The Securities and Exchange Commission of Zimbabwe (SecZim) and the Reserve Bank of Zimbabwe (RBZ) are currently collaborating on a regulatory framework to facilitate trading in virtual assets. Virtual assets encompass digital representations of value that can be traded or transferred digitally, including cryptocurrencies, digital tokens, non-fungible tokens (NFTs), and other forms of digital code.
The RBZ has previously banned the use of cryptocurrencies within the market, but recent events indicate a reconsideration due to the significant global valuation of the cryptocurrency market, which has surpassed US$2.42 trillion.
Fanwell Mutogo, CEO of the Zimbabwe Bankers Association, emphasized that local banks are still in the research phase and are not yet equipped to fully embrace cryptocurrency trading and investment services.
โZimbabwe banks are not yet ready to fully embrace cryptocurrency trading as it is still a new development that is still under investigation,โ Mutogo stated.
He acknowledged the RBZ's interest in digital currencies and highlighted the introduction of a gold-backed digital token as a step towards exploring alternative digital financial instruments.
Financial analyst Ranga Makwata highlighted the potential benefits of cryptocurrency adoption in Zimbabwe, particularly amid economic instability and historical challenges with centralized currencies prone to hyperinflation.
"Many will see cryptocurrencies as a valuable alternative, which is not prone to waves of hyperinflation unlike what we have seen with the local currency," Makwata commented.
However, Makwata also pointed out challenges such as regulatory uncertainty, limited infrastructure, and low financial literacy around cryptocurrencies that hinder their widespread adoption. He urged the RBZ and SecZim to establish a clear regulatory framework that guarantees legal certainty, consumer protection and guidelines for the legitimate use of virtual assets.
โBy addressing these elements and effectively regulating the virtual asset space, Zimbabwe can harness the benefits of cryptocurrencies for economic growth, financial inclusion and technological innovation,โ Makwata concluded.
As discussions continue between regulators, financial institutions and analysts, the future integration of cryptocurrencies into Zimbabwe's financial landscape remains a topic of great interest and debate.
Source: The Standard
