Zambia has revealed that it is studying the use of technology to regulate cryptocurrency to attain its long-term objective of becoming a crypto-savvy region.
The testing will be carried out by the Security Exchange Commission and Bank of Zambia, according to an announcement made by Zambia’s Minister of Technology and Science, Felix Mutati. In his words, “Cryptocurrency will be a driver of financial inclusion and a changemaker for Zambia’s economy.”
He claimed that cryptocurrencies are both a ground-breaking technology and “the future the country aspires to reach.”
But, doing so requires the creation of strong institutions, which will boost the effectiveness of bitcoin activities. In other words, for cryptocurrencies to gain traction and strength, a policy framework is necessary.
As announced, “Zambia is putting in place appropriate digital infrastructure, attracting investments in technology, and creating access, thereby positioning itself as a hub of technology in the region.”
Mutati expounds that the technology testing for crypto regulation will be upscaled “in due course as part of deliberate measures to achieve an inclusive digital economy” for Zambia.
According to the release, this kind of technology will improve financial inclusion for Zambians.
Zambians will be able to access the available services and become an integral part of digital banking thanks to this technology, which will scale substantial economic transformation. The goal is to reach over $4.7 million in digital payments, which would represent a significant advance in the economy.
Read also: Cybercrime Ravages Cryptocurrencies
The Influence of Cryptocurrency on African Countries
Developing strong regulatory frameworks for cryptocurrencies has been on the minds of many African nations lately. African states are evaluating cryptocurrencies to determine their unique functioning, which may greatly increase financial inclusion and economic development through simple, open, and efficient means.
Among other things, the Central African Republic (CAR) adopted Bitcoin as legal cash in the past year alone, making it the second nation in the world (after El Salvador) and the first in Africa.
Following that, CAR President Faustin-Archange Touadéra declared that the nation would start a new cryptocurrency initiative dubbed Sango as the first cryptocurrency effort to strengthen the country’s status as an emerging African crypto hub.
The Sango Coin was introduced by authorities in July and became the country’s official cryptocurrency. As this was going on, KenGen, a Kenyan energy company, declared that it would grant BTC mining operations access to its extra geothermal power starting in June.
By partnering with Nigerian authorities to establish the Export Processing Zone Authority (NEPZA), a digital economic zone akin to Dubai, last year, Binance furthered its influence in Africa. These policies and collaboration agreements frequently emphasize and reiterate the regulatory structures needed to shield African users from market collapses.
The Advertising Regulatory Board (ARB) of South Africa has mandated that all cryptocurrency exchanges and agencies operating within its boundaries must include risk warnings in all cryptocurrency marketing as one of many measures to protect users.
Why Invest In Crypto?
It is no longer news that more African countries are beginning to accept cryptocurrency. Here are some reasons why many have to chosen to invest in cryptocurrency.
Reduces the Impact Of Inflation
Over time, inflation reduces the value of fiat currencies, but it has a different impact on cryptocurrencies than it does on fiat currencies. Why? Because the supply of cryptocurrency is limited and decentralized.
No bank or government can arbitrarily alter cryptocurrency. Furthermore, this implies that the pace at which a fiat currency depreciates over time is greater than the potential return on investment offered by cryptocurrencies.
Yet, this does not imply that cryptocurrencies are immune to inflation. Theoretically, if more cryptocurrencies are mined, their value will decrease, but there are safeguards in place to prevent this.
It gives you Complete Control over Assets
A private key, which gives complete control over the purchasing, sending, and receiving of cryptocurrencies, is the only way for the cryptocurrency holder to get access to their investment.
That said, if any government decides to do so, as China did, crypto can be effectively prohibited with a simple penstroke. Free-market economies, however, have made the decision not to take this route.
To offer fail-safes that made it reasonably safe to invest in stock securities decades ago, nations including the USA, UK, and India are working to comprehend and regulate cryptocurrencies.
It gives the opportunity to benefit from many Innovations
A bitcoin investment may be a “shut it and forget it” activity for you, but there are two benefits for the project: it demonstrates social proof, or trust, and faith in the project’s promised results.
Second, it provides the project with the tools necessary to develop and broaden the scope of its offerings, collaborations, and partnerships, which can only be advantageous for its backers.