Regulation
Zimbabwe calls for public insights into cryptocurrency regulatory efforts
The Government of Zimbabwe has announced an initiative to gather public input on cryptocurrency operations as it develops regulatory policies for the sector.
As a result, this effort is part of a larger attempt to align with global trends and best practices in cryptocurrency management.
In a statement published in the state-run Herald newspaper, the Zimbabwean government invited all cryptocurrency service providers, both domestic and international, to provide comments and feedback. The government highlights the importance of understanding the cryptocurrency landscape to formulate effective regulations.
Furthermore, the consultation process involves a newly established committee with the task of involving operators within the virtual resource ecosystem. The deadline for comments has been set for June 26.
Historical context and recent developments
Zimbabwe has a turbulent financial history, marked by hyperinflation and currency instability. Last year, the government introduced a gold-backed plan virtual token to stabilize the economy. In April, Zimbabwe launched a new currency, ZiG (short for Zimbabwe Gold), in a bid to create a stable local unit. This is the sixth currency change in 15 years, following the repeated failure of the Zimbabwean dollar, which was reintroduced in 2019 but has succumbed to high inflation.
The country’s current financial difficulties are exacerbated by its exclusion from international capital markets since 1999, following a default on its debts. Zimbabwe is currently attempting to restructure about $19.2 billion owed to creditors, including $13 billion owed to international investors.
In May, Zimbabwe’s statistics agency began calculating inflation using ZiG as a basis. The transition to a new monetary unit showed some positive signs, with consumer prices falling by 2.4% from April to May. However, inflation remained elevated at 57.5% in April, calculated using a mixed measure of the defunct Zimbabwean dollar and the US currency.