HARARE – During the inaugural Capital Markets Conference in Nyanga, it was revealed that Zimbabwean banks are not yet prepared to fully integrate cryptocurrency trading into their services, despite ongoing efforts by regulators to establish 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 currently collaborating on a regulatory framework to facilitate the trading of virtual assets. Virtual assets encompass digital representations of value that can be digitally traded or transferred, including cryptocurrencies, digital tokens, non-fungible tokens (NFTs), and other forms of digital code.
The RBZ has previously prohibited the use of cryptocurrencies within the market, but recent developments signal a reconsideration due to the significant global valuation of the cryptocurrency market, which has surpassed US$2.42 trillion.
Fanwell Mutogo, CEO of the Bankers Association of Zimbabwe, emphasized that local banks are still in the research phase and are not yet equipped to fully embrace cryptocurrency trading and investment services.
“Zimbabwean banks are not yet poised to fully embrace cryptocurrency trading as this is still a new development which is still undergoing research,” Mutogo stated.
He acknowledged the RBZ’s interest in digital currencies, noting 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 amidst economic instability and historical challenges with centralized currencies prone to hyperinflation.
“Many will see crypto as a worthwhile alternative, which is not prone to waves of hyperinflation unlike what we have seen with the local currency,” Makwata remarked.
However, Makwata also pointed out challenges such as regulatory uncertainty, limited infrastructure, and low financial literacy around cryptocurrencies that hinder widespread adoption. He urged the RBZ and SecZim to establish a clear regulatory framework that ensures legal certainty, consumer protection, and guidelines for the legitimate use of virtual assets.
“By addressing these elements and effectively regulating the virtual assets space, Zimbabwe can harness the benefits of cryptocurrencies for economic growth, financial inclusion, and technological innovation,” 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 significant interest and debate.
Source: The Standard