Despite the government’s ban on cryptos in Zimbabwe, its central bank(The Reserve Bank of Zimbabwe) is considering a sandbox for crypto regulations. This move will help boost the country’s finance department, which has been walloped by inflation since 2007.
In a bid to curb inflation, the government is opting to settle for a digital currency that will operate within its central bank. According to The Chronicle Newspaper, the central bank is planning to create a platform where regulatory tests for cryptocurrencies will be done.
Through a partnership with Apollo Fintech, the government is planning to have its own gold-backed cryptocurrency that will allow Zimbabweans to make their digital payments through the Apollo Wallet.
Apollo Fintech’s CEO, Mr. Stephen McCullah, says that he is excited to work with the Zimbabwean government. He sees Zimbabwe as a country that prioritizes the implementation of financial solutions in a bid to resurrect its ailing financial sector. He announced that he had signed an agreement with RBZ bank to develop three Fintech projects, including the gold-backed digital currency.
Benefits of Cryptocurrency in Zimbabwe
The frequent economic instability and its effects on currency value has boosted the cryptocurrency market in the country. Having lifted the crypto ban, most crypto enthusiasts have invested in cryptocurrencies rather than the Zimbabwean dollar. Companies will, therefore, have to trade between their foreign currencies to the Zimbabwean dollar.
Being that Zimbabwe has no currency of its own except Zollar that is still under the US dollar; the bank strictly allocates them through an established priority list of import demands. Cryptocurrencies are becoming beneficial for traders who handle imported raw materials and machinery that will bring forth more fruits.
Crypto regulations will make it easier to trade digital currencies
According to Mutepfa, deputy director for financial markets and national payment systems in the bank; the bank will ensure that the crypto companies will operate as per the country’s financial guidelines. He adds that the suggested sandbox crypto regulations model will ensure that the government gets wholly involved in the digital platform. Through this, it will be easier for crypto companies to get involved since capital is provided.
Marius Reitz, the general manager of Africa for the Luno crypto-exchange platform, told media outlets that; the Sandbox will bring more understanding that will make it easier to trade Cryptocurrencies as a mainstream. He adds that by enforcing regulations, enough trust will be built between crypto companies and the regulators.