Zambia conducts crypto regulation tests to shape crypto laws and boost financial inclusion
The primary objective of Zambia's crypto policy is to balance innovation in the realm of digital payments with the safety of citizens
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According to an interview with Zambia's Minister of Innovation, Science, and Technology, Felix Mutati, tests are being conducted to simulate the use of crypto in real-world situations in order to assist in the development of crypto regulations in Zambia.
The tests are expected to be concluded by June. The purpose of carrying out these tests is to observe the potential impact of crypto in real-life scenarios, which will aid in shaping the country's laws related to crypto.
Zambia's central bank and securities regulator started conducting the crypto tests on February 19. Mutati explained that the tests aim to balance innovation and safety. The primary objective of Zambia's crypto policy is to balance innovation in the realm of digital payments with the safety of citizens, especially because crypto is highly volatile.
Additionally, Mutati said that the introduction of crypto in Zambia is subject to the implementation of digital identities and other digital infrastructures. Despite the long-delayed debt restructuring process in Zambia, which includes a substantial portion of debt owed to Chinese creditors, Mutati claimed that investment in Zambia has not been affected. In fact, there is an increased interest in investing in Zambia, he said.
According to a Reuters report on April 12, Zambia was the first country in Africa to default at the start of the COVID 19 pandemic in 2020. The Treasury Secretary of Zambia, Felix Nkulukusa, stated in a separate report that the country could lose the benefits of its macroeconomic reforms if the debt restructuring process is further delayed.
