Zambia is gearing up to regulate cryptocurrencies, as it completes simulations of crypto usage by the end of June. The southern African nation aims to strike a balance between innovation and consumer protection while developing crypto regulations.
The finance minister, Felix Mutati, highlights the significance of a robust digital infrastructure for adopting digital currencies in the region.
The Bank of Zambia and the Securities and Exchange Commission announced in April their plans to test the technology required for regulating crypto. Ethereum co-founder, Vitalik Buterin, visited the country to discuss the potential of Ethereum.
Zambia had previously discouraged its citizens from cryptocurrency trading, citing the lack of legal protection. However, it acknowledged the positive disruptive impact of blockchain technology on financial systems.
Cardano, co-founded by Ethereum’s Charles Hoskinson, is also aiding African crypto adoption through financial inclusion and digital identities.
Input Output Global, the company behind Cardano, partnered with the Ethiopian government to introduce decentralized digital student identities. It also co-funded Kenyan startup Pezesha, which enables responsible lending to small and medium-sized businesses.
The Bitcoin Lightning Network is driving crypto adoption in Africa. The CEO of the payments company, Square, and Bitcoin proponent, Jack Dorsey, and his team spoke at the Africa Bitcoin Conference in Accra, Ghana, advocating for Bitcoin’s role as an alternate financial system for countries with devalued currencies and complicated trade relations. Bitcoin provides a financial lifeline to the unbanked population without intermediaries.
