Science and Technology Minister of Zambia Felix Mutati has recently said in a Reuter’s interview that the country is all set to finish the simulatory test of cryptocurrency regulation by June this year. These tests may help to shape the real-world use of crypto in the country.
Furthermore, he also said that the country needs proper investment infrastructure and digital identities as well before cryptocurrencies can be introduced.
Central African Republic and crypto
Last year, the Central African Republic shocked the world by adopting Bitcoin as a legal tender and also launching its own Bitcoin token. Nigeria is the only exception that has issued guidelines to all its banks to ban any sort of crypto transactions.
Mutati also said that these tests will be helpful in creating a perfect balance between digital payments and citizens’ safety as cryptocurrency is a very volatile asset class.
Zambia has taken a careful step by issuing a warning in February stating that those who want to invest in cryptocurrency and related asset classes must be aware of the risks involved in it.
Increased investment appetite in Zambia
Zambia became the first African country to default during the Covid-19 time in 2020 having an external debt of $18.6B. When asked whether any investment has been cancelled or delayed because of the debt, Mutati said that there is a strong appetite among the people of Zambia to invest in cryptocurrency.
Bank of Zambia is currently simulating the test which will give them enough experience to implement regulations for the real world in June.