Keeping in mind the specific needs and challenges faced by Zimbabwe, the government aims to come up with a new strategy for smooth virtual asset regulation.
The government of Zimbabwe is actively working on laws to regulate crypto easily within the nation and is soliciting feedback from domestic and foreign crypto firm in an attempt to come up with the best possible way out. Keeping up with the ongoing trend on crypto regulations, Zimbabwe has given it a nice headstart.
The Zimbabwe Mail clearly defined that the government has formed a committee to collect data from cryptocurrency companies that provide services in Zimbabwe. The deadline is set to be June 26 for the same.
This initiative aims to understand the dangers like crypto frauds associated with crypto regulation and also ponders upon virtual asset regulation in the niche of cryptocurrency.
“Given the anonymity and decentralization that characterize these digital assets, it is crucial to identify and mitigate any associated risks,” Mangwana, the Permanent Secretary for Information and Publicity stated.
With this step, the Zimbabwe government not only aims at creating a regulatory structure that would be beneficial to regulate crypto but also aims to strike a balance between the innovation of crypto firms on one hand and the security of the country’s financial system on the other.
Zimbabwe’s Stake On Financial Mitigation
The country is trying to sort the distress-related financial mitigation with the help of crypto in general and virtual asset regulation in particular.
However, despite warnings from the International Monetary Fund, Zimbabwe has created Zimbabwe gold (ZiG), a digital currency backed by gold that was issued by the central bank in May of last year. The creation remained successful and now can be used as a payment method.
Conclusion
Zimbabwe has suffered from inflation and currency fluctuations for over a decade. In 2009, the country adopted the US dollar as its official currency after a period of hyperinflation.
2019 saw the government bring back the Zimbabwean dollar to strengthen the faltering economy. But a second, equally volatile cycle came right after it. To try and rein down inflation, the administration decided to use the US dollar once more last year.
Hence, what Zimbabwe comes up with about its virtual asset regulation is an interesting thing to monitor!
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