• Zambia is set to complete real-life crypto usage simulations by the end of June.
• The country’s science and technology minister, Felix Mutati, has said that they are seeking a balance between innovation and consumer protection.
• The Zambian government must build a digital infrastructure including digital identities before introducing cryptocurrencies.
Zambia to Complete Crypto Simulations
Zambia is set to complete real-life crypto usage simulations by the end of June, according to Felix Mutati, the country’s science and technology minister. Mutati has stated that his country is looking for a balance between innovation and consumer protection when it comes to cryptocurrency use.
Building Digital Infrastructure Before Introducing Cryptocurrency
Mutati has argued that before introducing cryptocurrency into Zambia, the government needs to focus on building a digital infrastructure including digital identities. This was revealed two months after he first announced plans for testing technology which would regulate cryptocurrency in the country. Despite being seen as potential embodiment of a future Zambia desires, Mutati also highlighted risks posed by cryptocurrencies to users which need regulation in order to achieve the right balance between safety and innovation.
Increased Investment Interest In Zambia
When asked about investment inflows into Zambia, Mutati reported increased appetite from investors wanting to invest in the Southern African nation. He also addressed concerns regarding Chinese loans which have topped $5.7 billion in 2022.
Crypto Regulation Balancing Innovation & Consumer Protection
The main goal of crypto regulations according to Muta is striking a balance between innovation such as digital payments and citizens‘ safety due to extreme volatility associated with cryptocurrencies. To do this, simulations are being conducted in order for authorities formulate proper regulation concerning crypto use in Zambia.
Conclusion
In conclusion, it appears that although there are many challenges associated with implementing cryptocurrency regulations in Zambia, progress towards achieving this goal is being made through simulating real-life use cases while still keeping user safety at heart amidst this innovative technology’s introduction into their economy..
