In a move to regulate Zambia’s crypto industry, the government has begun testing new technology, according to the advertisement From the Minister of Technology and Science Felix Motati.
The Zambia securities regulator and the Bank of Zambia are the primary drivers of this development. The two parties work together to ensure that the policy framework and infrastructure for digital currency regulations work.
The Zambia government is testing encryption regulation technology
Mutati stated that the technology would allow the Bank of Zambia (BoZ) to supervise and test cryptocurrency-related services before entering the market. Also, this new technology will help central banks create a regulatory framework for the cryptocurrency industry.
Mutati suggests that the technology will help the Bank of Zambia better understand how the cryptocurrency industry operates and how to regulate it effectively. He believes the government understands the importance of the industry and wants to ensure proper regulation to protect consumers and investors.
Mutati claims that digital currencies are the future of Zambia’s financial space, an achievement the country still wants to see. This is where the policy framework comes in, as it will facilitate revolutionary technology. Moreover, the Minister noted that this latest government effort is aimed at ensuring that Zambia becomes a hub for cryptocurrency technology across Africa.
The Minister of Technology and Science also noted that the government is working with the private sector to create the regulatory framework for the industry. This is in line with its efforts to attract investment and promote economic growth in the country.
Africa is on its way to becoming a crypto hub
Africa has seen great importance Growth in cryptocurrency adoption In recent years, Zambia is no exception to this growing trend. Moreover, more people are turning to cryptocurrencies as a way to store value and make transactions. The Zambia government’s move to regulate the industry comes in response to the growing demand and need to protect investors and consumers from potential risks associated with cryptocurrencies.
Before now, the Zambia government signed an agreement with a blockchain subsidiary (Overstock) in 2018. The core of the collaboration with the Zambian authorities was to restructure land ownership through the introduction of digital title certificates through a Blockchain-based land titling software.
Meanwhile, other authorities are more interested in digital currencies in many African countries. An example is CBN (Central Bank of Nigeria) is considering creating a regulatory framework for Initial Coin Offerings (ICOs) and Stable Digital Tokens (Stablecoins).
Moreover, the International Monetary Fund (IMF) Show interest In regulating the digital currency market in Africa in November 2022. The move was in response to the continued growth in the crypto industry in the region.
Meanwhile, the move by the Zambian government to test a new technology to regulate the cryptocurrency industry demonstrates its commitment to security in the crypto space. The development will also provide a clear regulatory framework for the sector and increase investor confidence, leading to increased investment in the country.
Featured image from Pixabay, chart from TradingView.com
