Zambia develops new technology to regulate cryptocurrencies

The development of new technologies in Zambia is intended to pave the way for the country’s cryptocurrencies to be subject to government oversight.

According to Felix Mutati, the Minister of Technology and Science in Zambia, the Bank of Zambia, and the country’s securities authorities are now conducting tests of the technology.

As part of the concerted efforts to create an equitable digital economy in the country, the testing of the technology that regulates cryptocurrencies will eventually be scaled up.

Cryptocurrency – A revolutionary technology for Zambia

According to Minister Felix Mutati, cryptocurrency is a game-changing kind of digital money that symbolizes a vision of the future that Zambia hopes to realize.

Cryptocurrencies are a kind of digital currency that is secured and recorded with the use of a distributed ledger technology known as the blockchain.

They are a digital kind of currency that may be used to pay for things that are used often. As the government puts in place suitable digital infrastructure, draws investments in technology, and develops access, Zambia is positioned itself to be a center of technology in the area.

Minister Mutati added that there is a need for a regulatory framework that promotes cryptocurrencies since this is the future that the government intends to reach.

Zambia is developing the magnetism that draws investors, and it is one of the nations in Africa that is becoming a must-be site for investment.

The federal government has set a goal of exceeding $4.7 million in terms of digital payments, which will have a significant impact on the economy.

People will have far more access to digital financial services as a result of the proliferation of digital payment systems, and cryptocurrencies will be a driver for financial inclusion as well as a change-maker for the country’s economy.

Central Bank Digital Currency

In addition to using cryptocurrencies to advance the country’s financial inclusion agenda, Zambia hopes to achieve this through the yet-to-be-launched central bank digital currency (CBDC).

Back in February 2022, the Bank of Zambia began exploring the pros and cons of using a CBDC and was expected to complete this in the fourth quarter of the past year.

Mutati predicts that once the planned digital payments infrastructure is in place, bitcoin will be the catalyst for financial inclusion and the game-changer for Zambia’s economy.

Zambia is putting in place appropriate digital infrastructure, attracting investments in technology, and creating access. This will position the country as a hub of technology in the region.