The Bank of Zambia (BoZ) published an official statement in which it reminded its citizens that cryptocurrencies “are not legal payment currency in the Republic of Zambia”. According to this document, on BoZ reserved the rights to issue currencies.
The statement also describes the fears associated with cryptocurrencies, including their use in money laundering and terrorism financing. Despite this, it is emphasized that it is necessary “not to limit, but to encourage innovation.”
It is not known what prompted BoZ to publish the document. The bank only referred to the “growing public interest in cryptocurrencies”, as evidenced by the increasing number of requests received by the institution.
Last February, the Zambian Securities, and Exchange Commission called on investors to exercise with caution assets that are not within the regulatory provision.
At the same time, Zambia recently signed a memorandum of understanding with Medici Land Management (MLG), a subsidiary of Overstock.com, to begin using the blockchain for storing land registry data. At the same time, Medici signed an agreement with the World Bank on the implementation of its method in practice “in the whole developing world”.
After the statement of BoZ, many analysts predict a worsening crisis in the economy of Zambia due to endless loans from Western institutions, including the International Monetary Fund (IMF), are increasingly contributing to corruption and escalating the situation. Even representatives of the IMF recently said that loans for the development of Zambia may have done more harm than good.
At the same time, analysts believe that states, where an unstable economic situation is observed, can get out of it through the use of cryptocurrencies.