Africa's Zambia tests tech for regulation of crypto

As the crypto markets in Africa continue to grow, In November, the International Monetary Fund called for increased regulation of crypto markets in the continent

By Shashank Bhardwaj

Published: Feb 23, 2023 04:02:26 PM IST

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Zambia’s Technology and Science minister, Felix Mutati, announced that the country’s securities regulator and the Bank of Zambia are testing technology to facilitate the regulation of crypto in an attempt to achieve an inclusive digital economy.

While speaking at Zambia’s capital, Lusaka, Mutati claimed that crypto is the future that Zambia desires to achieve. However, he added that a policy framework is needed to support revolutionary tech.

“The testing of the technology on regulating cryptocurrency will be upscaled in due course as part of deliberate measures to achieve an inclusive digital economy for Zambia,” said the minister.

Mutati wants Zambia to be a tech hub in Africa, and he believes this can be achieved by developing digital infrastructure and by getting more investments in the sector.

As per Mutati, “Through digital payment platforms, people will become much more included in digital financial services hence, cryptocurrency will be a driver for financial inclusion and a change maker for Zambia’s economy.”

In 2018, the Zambian government signed a memorandum of understanding with Overstock’s subsidiary for blockchain land registry. As per the agreement, Zambia authorities and Overstock’s Medici Land Governance would work together to reform land ownership by enabling local rurals access to the financial markets and digital ownership certificates.

Other countries in Africa are also paying close attention to crypto. The Central Bank of Nigeria recently released a report urging for the development of a regulatory framework for initial coin offerings and stablecoins. When it comes to Central Bank Digital Currency adoption, Nigeria is among the top in the world.

As the crypto markets in Africa continue to grow, In November, the International Monetary Fund called for increased regulation of crypto markets in the continent. The IMF cited the example of FTX and its effects on the overall crypto industry for its heightened caution.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash