Zambia Tests Crypto Assets Regulation Technology

Zambia’s Minister of Technology and Science, Felix Mutati, has announced that the country’s central bank and Securities and Exchange Commission are currently testing technology to regulate crypto assets.

Mutati’s statements suggest that the current administration is becoming more open to cryptocurrency. This is despite the Bank of Zambia’s previous discouragement of its use.

The minister sees crypto assets as a revolutionary technology that represents the future that Zambia aspires to achieve. We will soon scale up regulatory technology testing to help the country achieve an inclusive economy,” he said.

Zambia hopes to establish itself as the region’s technology hub, and the government is putting in place the infrastructure required to achieve this target.

Zambia’s Plan to Launch Central Bank Digital Currency

Zambia’s central bank is planning to launch a central bank crypto asset (CBDC) to further its financial inclusion agenda. The Bank of Zambia previously investigated the benefits and drawbacks of using a CBDC, and the findings of the study were expected in the fourth quarter of last year.

The bank believes that a CBDC could narrow the financial exclusion gap and reduce transaction costs, making it a valuable tool for the country’s developmental goals. Zambia plans a CBDC to establish itself as a technology hub. Infrastructure creation is also part of this effort.

The minister sees cryptocurrency as a driver of financial inclusion and a game-changer for the national economy. Once the envisioned digital payments infrastructure is in place, the government plans to use cryptocurrencies to advance the country’s financial inclusion agenda (CBDC).

Zambia’s central bank and securities regulators are testing technology to regulate cryptocurrencies. Moreover, the government sees technology as a valuable tool for achieving the country’s developmental goals, in conclusion.

Related Reading | Oman Establishes New Regulatory Framework For Crypto Assets

The planned launch of a central bank digital currency is part of Zambia’s efforts to become the region’s technology hub and to further its financial inclusion agenda.

As regulatory technology testing is scaled up. Zambia is positioning itself in cryptocurrency and digital finance, evident from its efforts toward regulatory technology testing.