A Little Background
Even though there is a current Cryptocurrency ban in the country of Zimbabwe, interest is now being shown on taking a big leap of faith and actually embracing elements of the new digital economy. At the moment, all financial institutions in the country are absolutely banned from any Cryptocurrency activity and it looks as if this will remain true for some time to come.
Earlier this year, the Reserve Bank of Zimbabwe told all commercial banks that under no circumstance were they to work with Cryptocurrency companies or take part in any Cryptocurrency transactions. Banks had literally two months from the issuance of said notification to close all accounts and relationships with said firms. A few days later, the country’s central bank then ordered Golix to stop all of its operations with immediate effect. Golix was the very first Cryptocurrency exchange in Zimbabwe and remained the leading one up until its closure. However, four days later Golix approached the High Court to ask for the ban to be lifted. This was carried out effectively however because no Cryptocurrency activities were allowed to take place in the country, Golix was left with no alternative but to move into Kenya, South Africa and Uganda to try and keep afloat.
So Moving Forward
The Reserve Bank of Zimbabwe’s governor is keen to improve his knowledge on the subject of Cryptocurrencies which is a very positive sign considering the lack of understanding or want to understand previously. The interest has come specifically over Blockchain and how it can improve life in Zimbabwe. However the views on Cryptocurrencies remain the same which is a shame as this could really support the country and assist with its finances.
So far, a project has been set rolling to research into Blockchain and the technology behind it. The order came from the Reserve Bank of Zimbabwe who are looking to streamline operations and improve efficiency. The country is not without its financial issues including huge inflation figures, however in a bid to align with other countries around the world things may be about to change but only on a small scale at the moment.
The Trouble Is
The governor of the Reserve Bank of Zimbabwe has recently suggested now it is time to embrace the new digital economy. He is very aware that Blockchain is a huge discussion point worldwide and really wants to explore what the technology can do for the country. It is very obvious that there are still huge concerns with Cryptocurrencies – the Blockchain technology is where the interest is. This was strongly highlighted by the governor. As with many of those in a similar position with similar thoughts on the Cryptocurrency industry, the lack of regulation coupled with a lack of knowledge on the subject matter is where the problem lies. It is certain that clarity is needed and a better appreciation of the industry before any further decisions can be made. Until then, Zimbabwe remains very much where it is sadly.