The Reserve Bank of Zimbabwe had earlier placed a ban on cryptocurrencies restricting financial institutions from working with cryptocurrency related firms. However, the central bank now wants to study and embrace the blockchain technology that “encompasses all the cryptocurrencies.” The RBZ considers the blockchain to be a “new developing global innovation” and is willing to embrace it.
The governor of the RBZ, John Mangudya explained the reason for the change of heart saying, “In fact, it is true that for the rest of the world, if you go to countries like United States, China, United Kingdom, and South Africa, it [blockchain] is the issue that is being discussed by the central banks, including the likes of the International Monetary Fund.” However John Mangudya makes it clear that he wasn’t referring to the digital money underpinned by the blockchain technology. He explains, “I did not say cryptocurrencies because it is lower than blockchain. Blockchain encompasses all the cryptocurrencies such as bitcoin and we are saying we are putting in motion studies, ways and means of investigating that blockchain technology.”
In May this year, the RBZ placed a ban restricting crypto firms from transacting in the country. However by 21st of May a court resolved the issue and Golix Zimbabwe’s biggest exchange could resume transaction. However, with the governor of the RBZ calling for the study and adoption of the technology, there seems to be hope for cryptocurrency in Africa. John Mangudya explains the need for regulation saying, “What we are against as I have always said is to do things which are not regulated because we need to know where these bitcoins are being mined and do want to hunt them. So while we want to embrace things, we need to know where they are coming from. If you embrace mobile banking platforms we know that there is a trust account.”
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