According to a report by a local newspaper on March 16, the Reserve Bank of Zimbabwe (RBZ), is reportedly in the process of creating a regulatory sandbox for digital currency firms within the nation. The newspaper cited a representative from the RBZ who was speaking at a conference last week.
According to the report, the central bank’s deputy director of financial markets and national payments, Josephat Mutepfa revealed that the RBZ is working on a regulatory framework for cryptocurrency entities in the country.
Moreover, the report claims that the regulatory sandbox will be used to determine whether a firm should be approved to run independently. While addressing the Sound Prosperity Economic Forum in Bulawayo, Mutepfa stated that once a firm enters the sandbox; it will enter the market as an authentic product, or collaborate with a financial institution or a mobile money company. He says:
“Once you enter the sandbox you either exist as a bonafide product to enter the market or you are guided to say that you need to partner a bank, a mobile money platform or your product needs to be licensed like a microfinance company.”
Reserve Bank of Zimbabwe; Regulation is the way to go
The RBZ’s resolve to regulate digital currencies, is as a result of their growing popularity among the younger generation. Well, this new development is against RBZ’s 2018 stance on cryptocurrencies; which saw all banks in the country under its control; banned from offering banking services to cryptocurrency businesses.
In addition, the Reserve Bank of Zimbabwe had warned individuals against trading digital currencies. The central bank claimed that there will be no legal cover provided, in case of any scam and fraudulent activities.
Last month, the International Monetary Fund (IMF), reported that Zimbabwe is in the middle of an economic and humanitarian crisis. The country is currently fighting the high inflation levels and food shortage in the country. Back in 2008, Zimbabwe faced the worst ever hyperinflation experienced anywhere else in the world. Digital currencies like bitcoin can help the country fight the hyperinflation