Zimbabwe has announced its intention to initiate consultation regarding the operation of crypto assets in a news release issued by Reuters. This action occurs in response to the government’s implementation of regulations for this industry.
A statement released in the state-owned newspaper invites all participants in the cryptocurrency sector to contribute their insights, including entities with registered offices outside Zimbabwe but conducting operations within the nation.
Zimbabwe’s objective is to achieve compliance with these global benchmarks and, through this evaluation, gain its initial exposure to the cryptocurrency sector.
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Committee’s Role in Enhancing Efficiency of Assessments
The government has appointed a committee to communicate with virtual asset companies and individuals to streamline the assessment process. Because it needs stakeholder input to approve its regulatory plan, the committee will accept comments until June 26.
Zimbabwe’s financial issues have been prioritised in recent years. The country launched a gold-backed virtual currency the previous year to address economic volatility. They introduced ZiG, Zimbabwe Gold, in April, the sixth attempt in 15 years to establish a reliable African currency. This eliminated the Zimbabwean dollar, which crashed multiple times since its 2019 relaunch and caused inflation.
The national statistical agency switched to ZiG inflation calculations in May. The agency reported a 2.4 per cent drop in consumer prices from April to May, which is impressive given that Zimbabwe and US dollar inflation was 57.5 per cent in April.
Innovations in Zimbabwe’s Economic Policies
Since problems related to economic instability started, Zimbabwe has been working hard on economic reforms to stabilise its economy using new financial tools and policies. It is known that it is one of many countries affected by these problems.
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Zimbabwe wants to become a middleman to oversee cryptocurrency appeals. To do this, it works on a complete regulatory framework that can adapt to new developments, protects the public, and keeps the economy stable. In this way, the government has acknowledged that digital currencies are becoming more critical in the world economy.
As a result, Zimbabwe is still facing its current economic problems. Setting up a proper regulatory framework for cryptocurrencies could make the country’s financial system more stable and long-lasting.
The result of such an open discussion will significantly affect how people in Zimbabwe use digital currencies. It could help the country’s overall efforts to get the economy going again.