PHILLIMON MHLANGA
The Reserve Bank of Zimbabwe (RBZ) will soon unveil a roadmap for an effective implementation of the country’s proposed digital currency, the Bankers Association of Zimbabwe (BAZ) has said.
A digital currency refers to any currency available exclusively in electronic form.
“There has been a lot of development on digital currencies particularly in the developed world. The Reserve Bank of Zimbabwe (RBZ) said they are coming up with a roadmap for digital currencies,” BAZ president, Mehluli Mpofu said.
He added: “When they [digital currencies)] come through, it will present a significant opportunity to include the informal sector.”
The development comes after digital currencies such as bitcoins and thousands of other cryptocurrencies have gained rapid popularity across the world including Zimbabwe.
However, these are not issued and overseen by central banks.
Consequently, the development has forced central banks to research how local digital currencies might work.
Recently, the Financial Intelligence Unit (FIU) director general, Oliver Chiperesa, said the FIU was in discussions with the government to regulate the rapidly growing and controversial cryptocurrency trading.
Cryptocurrencies are digital coins that people use to pay for goods and services. These coins are stored and exchanged on a blockchain, a secure network that operates without central authority, such as a bank. This means users can send coins to one another without the need for an intermediary.
And without a central authority storing data about its customers, blockchain users can remain anonymous.
Some countries have moved to regulate cryptocurrencies to yield some control over the assets.
Last year, RBZ banned all banks from trading or processing transactions involving cryptocurrencies saying the bitcoin and other cryptos were the currency of choice for money launderers and other criminals.
After the ban, the crypto traders, who are not on the radar of the RBZ, went underground.
They now rely on social media to sell and buy the digital asset in Zimbabwe from a network of die-hard traders and enthusiasts.
There has been a rise in the cryptocurrencies trading in Zimbabwe, despite many understanding little of the associated risks.
