Per an announcement by Felix Mutati, the minister of Technology and Science in Zambia, the Zambian government has started testing new technology to control the cryptocurrency industry in the country.
The key forces behind this progress are the Securities Regulatory Authority of Zambia and the Bank of Zambia. Both sides collaborate to ensure that virtual currency law's legislative framework and technology are fully functional.
The Government of Zambia's Experiment with Crypto Regulation
According to Mutati, the technology would enable the Bank of Zambia (BoZ) to monitor and evaluate services associated with cryptocurrencies before their introduction into the market.
Also, the central bank will be able to build a regulatory regime for the bitcoin industry with the assistance of this new technology.
According to Mutati, the technology will assist the Bank of Zambia in better understanding how the bitcoin business functions and how to regulate it efficiently.
He believes that the government is aware of the significance of the industry and is seeking to ensure that appropriate legislation is in place to safeguard consumers and investors.
Mutati contends that cryptocurrencies are the way of the future for Zambia's financial system, an accomplishment the country has yet to realize. The policy framework comes into play at this point since it will make revolutionary technologies possible.
In addition, the minister mentioned that the purpose of the current effort made by the government is to make sure that Zambia becomes a technological center for digital currencies throughout Africa.
The Minister of Technology and Science also mentioned (1) that the government is collaborating with private enterprises to develop laws for the industry. This is consistent with its aim to entice investment and foster economic expansion throughout the nation.
Africa Is Making Strides Towards Being A Center For Cryptocurrency
During the past few years, Africa has witnessed a tremendous increase in the usage of cryptocurrencies, and Zambia is not an exception to this rising trend. Moreover, an increasing number of people are looking to crypto as a tool to make transactions and hold money.
The attempt by the government of Zambia to regulate the business is a response to the growing demand for cryptocurrency and the necessity to protect investors and citizens from the possible risks associated with them.
Before this moment, the Zambian government had struck an agreement in 2018 with a blockchain firm called Overstock. The core idea was to work with the Zambian government to reorganize land ownership by distributing digital ownership certificates as part of a land titling initiative based on blockchain technology.
In the meantime, other governments in several African countries are becoming increasingly interested in digital currencies. As a reference, the Central Bank of Nigeria (abbreviated as CBN) is mulling over the possibility of establishing a set of regulations for initial coin offerings (ICOs) as well as stable digital tokens (stablecoins).
In addition, the International Monetary Fund (IMF) demonstrated an interest in regulating the digital currency market in Africa in November of 2022. This action was taken as a response to the region's cryptocurrency industry's sustained expansion, which prompted this response.
In the meanwhile, the decision by the government of Zambia to test new technology to regulate the cryptocurrency business displays a commitment to maintaining safety within the cryptocurrency area. This initiative will also offer a clear legal framework for the sector, which will enhance investor trust, ultimately resulting in a rise in investment in the country.