Zimbabwe’s government authorities have stated that a CBDC is being investigated, but Bitcoin and other cryptocurrencies are not currently being considered.
The acceptance of Bitcoin as legal cash in El Salvador has sparked several arguments and discussions about the possible financial repercussions. Despite recent rumors to the contrary, it seems that Zimbabwe is not preparing to follow in the footsteps of the Central American nation any time soon.
While refuting the earlier allegations, the government has indicated that the Zimbabwe dollar (ZW$) would continue to be the country’s only recognized currency. Monica Mutsvangwa, Zimbabwe’s Minister of Information, Publicity, and Broadcasting Services, also refuted the allegations during a Cabinet meeting yesterday and was cited as stating that bitcoin will not be a local currency.
However, Zimbabwe’s communications minister disclosed that the country is also experimenting with digitizing its sovereign money.
“Like other nations throughout the globe, the Government of Zimbabwe, via its Financial Technology Group, is researching Central Banking Digital Currency as opposed to cryptocurrencies, bitcoins, or any other type of derivative,” says the statement.
It’s hardly surprising that Zimbabwe is interested in CBDCs, given that authorities all over the globe are looking into the same option in reaction to the expanding cryptocurrency business. Africa isn’t far behind as numerous nations speed up their CBDC tests. For example, the Bank of Ghana recently announced the launch of an “e-cedi” test program. In addition, Nigeria’s eNaira premiered in the latter week of October.
The most recent explanations come in the wake of news that the government is contemplating using Bitcoin (BTC) as a legitimate payment option. It had previously been said that the country’s decision was motivated by the expanding need for technology.
The article in question also cited Charles Wekwete, the president’s office’s permanent secretary. Wekwete reportedly said that the government was thinking about adopting Bitcoin with the support of private-sector firms.
Mthuli Ncube, Minister of Finance and Economic Development, for example, previously said that cryptocurrencies will not be utilized as a currency in the nation. The Professor, on the other hand, is not wholly anti-crypto.
Ncube said in September of this year that he was opposed to crypto being used as a “transaction currency” due to its extreme volatility. Nonetheless, he feels there is nothing wrong with investigating the asset class to determine its feasibility.
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