The government of Zambia is working towards regulating cryptocurrency in the country by testing new technology, according to Technology and Science Minister Felix Mutati. In a statement, Mutati said that Zambia is keen to embrace the future of cryptocurrency, but stressed the need for a policy framework that supports the technology.
Cryptocurrencies use blockchain technology to record and secure transactions and are increasingly used as a digital form of cash for everyday items. The testing of technology on regulating cryptocurrency will be upscaled as part of deliberate measures to achieve an inclusive digital economy for Zambia, Mutati added.
He further noted that Zambia has been attracting investments in technology and creating access, thereby positioning itself to be a hub of technology in the region. According to Mutati, the government is targeting over $4.7 million in digital payments, which would be huge for the economy.
“Through digital payment platforms, people will become much more included in digital financial services, hence cryptocurrency will be a driver for financial inclusion and a change maker for Zambia’s economy,” Mutati said.
Cryptocurrencies have grown in popularity in recent years, with the likes of Bitcoin and Ethereum capturing the public’s attention. The technology behind cryptocurrencies, blockchain, has also been adopted by various industries, with potential use cases including supply chain management, real estate and healthcare.
The move by Zambia to regulate cryptocurrency could signal a growing trend in Africa towards greater adoption of the technology. Other African countries, including Nigeria and Ghana, have also been exploring the use of cryptocurrencies and blockchain technology.
As the world becomes increasingly digital, the use of cryptocurrency is likely to become more widespread. By regulating cryptocurrency, Zambia could potentially unlock a new era of economic growth and financial inclusion for its citizens.