The government of Zimbabwe is reportedly considering adopting Bitcoin as legal payment service.
The government of Zimbabwe is reportedly considering adopting Bitcoin as legal a payment service, according to a local news outlet. The nation’s government is actively consulting with the private sector on the merits of Bitcoin and crypto.
During a Computer Society of Zimbabwe summit, Permanent Secretary and Head of e-government Technology Unit in the Office of the President Charles Wekwete announced that the Bitcoin and crypto consultations with the private sector are already in progress.
Zimbabwe’s government is reportedly “skeptical” that Bitcoin may externalize funds from the nation. According to data from the World Bank, Zimbabwe received 7.2% of its gross domestic product in remittances in 2020. While this is quite a step down from El Salvador’s 24% of GDP in remittance in 2020, if Zimbabwe accepted Bitcoin as legal currency, the nation would enjoy functionally commission-less and comparatively low-fee remittance.
Members of the Computer Society of Zimbabwe asked what the government was doing to adopt Bitcoin in light of El Salvador’s adoption and the massive global increase in adoption. Wekwete responded that many governments in the world are still not very clear on their Bitcoin and crypto policy.
Wekwete stated, “Governments are still trying to understand and properly trying to create policies on how to deal with it. In our case, initially we were trying to understand their implication because they are a fundamental departure from previously known financial instruments.”South Africa’s Sasol to sell 30% stake in Mozambique’s ROMPCO for $364 mln
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He continued on the topic of consultation, “So Government has put in place mechanism to try and gather views from various sectors of society in order to eventually formulate policies.”
“Sooner or later Government will make statements but we have not gotten there yet, the consultative process is already underway,” said Wekwete. He went on to invite private sector players to reach out to government representatives.
Zimbabwe’s active consultation of Bitcoin experts should highlight just how the nation of El Salvador has benefited from Bitcoin adoption. It is only a matter of time before the world’s second nation allows its citizens to use Bitcoin as legal tender and begins to publicly buy and hold the asset in reserve.
If El Salvador’s path to adoption is any indication, nations who need Bitcoin are going to adopt it before the wealthier nations, who operate as if immune from the effects of endless money printing. However, Bitcoin will not stay niche. Every nation may have to contend with its rapid adoption sooner than they think.
Zimbabwe has been paying attention to the increasing demand for crypto among its people, which it views as a possible avenue for growth. The country has also been receptive to regulating the entire sector.
Zimbabwe’s government is considering utilizing Bitcoin (BTC) as a legal payments option to meet this growing demand and harness the technology, according to local news.
According to the news, retired Brigadier Colonel Charles Wekwete, the permanent secretary and head of the office of the president and cabinet’s e-government technology unit, confirmed that discussions with businesses are already underway.
According to Wekwete, the disadvantages of the decentralized ecosystem include unregistered cross-border transfers, externalization of money, money laundering, and ill-gotten cash flow into subsequent illicit or unlawful actions.
He also stated that the authorities are attempting to develop regulations to protect consumers and help the country’s financial future. As a result, before making any major policy changes, the government has sought input from different sectors.
Zimbabwe has not yet made any major declarations, according to the official, who added that the country is still in the consultation stage.
The government of Zimbabwe has accepted the digital economy framework as part of National Development Strategy 1, which it refers to as a means for connecting government and business efforts in addressing the developing notion of the digital economy.
More countries are adopting El Salvador’s policy of enabling Bitcoin use and regulation. Despite the flood of criticism from the public and throughout the world, El Salvador’s government remained adamant in its backing for Bitcoin legislation. On Twitter, Salvadoran President Nayib Bukele praised the plan’s success, stating that Bitcoin earnings will be used to build 20 schools and a hospital in the country.
Africa is a fantastic testing ground for cryptocurrency, and many businesses are now producing goods and services suited to various countries on the continent — namely to fill the void between African nations and other countries in terms of cross-border payments.
As reported by Cointelegraph, between July 2020 and June 2021, Africa’s cryptocurrency market grew by over 1,200%, according to Chainalysis. High penetration was seen in Kenya, South Africa, Nigeria and Tanzania.