Zambia experiments with technology to regulate crypto

The Zambian ministry of technology and science has announced that it is testing the use of technology to regulate crypto as Zambia sets out to achieve its long-term goal of becoming a regional hub.

Felix Mutati, Zambia’s Technology and Science Minister, announced that the Security Exchange Commission and Bank of Zambia would conduct the testing. In his words, 

“Cryptocurrency will be a driver of financial inclusion and a changemaker for Zambia’s economy.”

He argued that cryptocurrencies are a revolutionary technology, as well as “the future the country desires to achieve,” as reported by CryptoNews.com.

Nonetheless, achieving this necessitates the establishment of solid structures, structures that will propel the efficacy of cryptocurrency operations. In other words, a policy framework is required for cryptocurrency to find support and strength.

As announced,  “Zambia is putting in place appropriate digital infrastructure, attracting investments in technology, and creating access, thereby positioning itself as a hub of technology in the region.” 

Mutati expounds that the technology testing for crypto regulation will be upscaled “in due course as part of deliberate measures to achieve an inclusive digital economy” for Zambia. The announcement argued that this sort of technology would increase financial inclusion for the citizens of Zambia.

Read Also: Rwanda becomes the latest African country to restrict banks from processing crypto transactions

Through this technology, Zambians will become an integral part of digital finance, enabling them to use the available services, which will scale significant economic change. The aim is to reach over $4.7 million in digital payments, which would be considered a pivotal economic improvement.

Mutati explained, “Zambia has created magnetism that attracts investments, and it is one of the countries in Africa that is becoming a must-be place for investments.”

Zambia and Africa’s emerging crypto regulation frameworks 

Creating formidable crypto regulatory frameworks has been on many African countries’ lips in recent months. African nations’ assessment of crypto is to ascertain their divergent functionality, which may attract immense financial inclusion and economic development via easy, transparent, and streamlined means.

Read Also: South Africa’s Advertising Regulatory Board (ARB) Enforces Compulsory risk Warnings in Crypto Ads

The Central African Republic (CAR) became the second country in the world (after El Salvador) and the first African country to embrace Bitcoin as a legal tender in the past year alone, among other examples.

Immediately after that, CAR President Faustin-Archange Touadéra announced that the country would launch a new cryptocurrency project called Sango as the first cryptocurrency endeavour to enhance the nation’s reputation as an up-and-coming African crypto hub.

Authorities debuted the Sango Coin in July, launching it as the nation’s official cryptocurrency. In the meantime, KenGen, a Kenyan energy production business, announced plans to provide BTC mining operations access to its excess geothermal power in June.

Last year, Binance extended its tentacle in Africa by collaborating with Nigeria’s authorities to launch Export Processing Zone Authority (NEPZA), a Dubai-like digital economic zone. The emphasis and reiteration of the regulatory frameworks required to protect African users from market crashes are prevalent among these policies and partnership agreements.

One of the many efforts to protect users is South Africa’s Advertising Regulatory Board (ARB), which has declared that all cryptocurrency exchanges and agencies within the country’s borders must include risk warnings in all crypto advertisements.