Zambia tries out crypto regulation solution

The Bank of Zambia and the country’s securities regulator are currently exploring the possibility of using blockchain technology to regulate cryptocurrencies. Zambia’s Minister of Technology and Science, Felix Mutati, recently announced the move, stating that the country is looking to achieve an inclusive digital economy. However, he also pointed out that a policy framework is needed to support this “revolutionary technology.”

Speaking in Lusaka, the capital of Zambia, Mutati claimed that the country is keen on embracing cryptocurrency, as it is the future it desires to achieve. He further noted that the testing of the technology will be increased in due course to achieve an inclusive digital economy for Zambia. The minister added that Zambia is seeking to become a technology hub in Africa through developing digital infrastructure and attracting investments in the sector.

Zambia’s government has previously signed a memorandum of understanding with Overstock’s blockchain land registry subsidiary, Medici Land Governance, in 2018. The agreement allowed Overstock to work with Zambian authorities to reform land ownership, providing local rural areas with digital ownership certificates and access to financial markets.

Several other African countries are also paying close attention to cryptocurrency. The Central Bank of Nigeria recently published a report urging the development of a regulatory framework for stablecoins and initial coin offerings. The International Monetary Fund has also called for increased regulation of Africa’s crypto markets, given the sector’s rapid growth in the region. According to analytics firm Chainalysis, Africa’s crypto market increased by over 1,200% between July 2020 and June 2021, with Nigeria, South Africa, Tanzania, and Kenya leading the adoption.