The Bank of Zambia (BoZ) announced on 12. October, a communiqué on the Status of crypto-currencies such as Bitcoin in Zambia. Accordingly, the crypto will not have currencies, while some of the characteristics of money, but are considered legal means of payment.
A recently published press release, the Central Bank allowed it to take a look at the Zambian dealing with Bitcoin & co. The BoZ, the report stresses, among other things, their monopoly on the issuance of Bank notes:
„[t]he Bank of Zambia Act limited the right to issue Bank notes […] exclusively on the BoZ. Crypto not legal tender in the Republic of Zambia, currencies.“
Although trade with crypto currencies is not prohibited, the BoZ points out, however explicit on the associated risks. It is said in the message:
„these risks include money laundering and the financing activities of terrorism and General consumer protection risks such as fraud and Hacking for the customers, in most cases, due to the unregulated nature of crypto-currency-related transactions no remedy is available.“
Blockchain instead of reason book
The Statement is in connection with a recently signed Memorandum of understanding between the Zambian Ministry of Land and natural resources, and the Medici country Governance. The Blockchain-an offshoot of the online trade Overstock.com plans for the introduction of a block chain-based management software to facilitate the registration of ownership of land in Zambia.
Like many other developing countries, Zambia has difficulties, a functioning administration. Blockchain solutions are clear Use Cases. Projects such as the Medici country Governance could therefore be a pioneer for financial inclusion from developing countries. How exactly does a Blockchain-basic book can work, you can find here.
An eye on the African Bitcoin regulation
Bitcoin & co. delight meanwhile, in many countries in Africa are growing in popularity. The interest in Bitcoin is in countries with dysfunctional monetary regimes is particularly high, since the money supply can not be watered down. So it is not surprising that the Zambian Central Bank expresses just now to Kryptos. Because the country is headed straight for a crisis. Inflation climbed to eight percent and the debt level is rising continuously.
Whether the government is resorting to similar drastic steps, such as the neighboring country, Zimbabwe, is not found in the Central Bank message. In Zimbabwe, the government moved in may of any Bitcoin activities the latch.
The partnership with Medici country’s Governance, however, suggests a more liberal attitude of Zambia in terms of Blockchain technologies. Also, the last sentence of the communiqué is not right especially confident:
„In accordance with the BoZ-Position that the regulation limit, but innovation should enable, the BoZ continued to all developments.“