Minister Announces Plans to Finish Cryptocurrency Tests by June

Science and technology minister, Felix Mutati, has announced the government’s plans to finish the tests necessary to approve cryptocurrency usage in the country by the end of June.

According to the minister, such tests – which started on 19th February – include the central bank and securities regulator simulating using cryptocurrency in the real world.

In an interview with Reuters, Mutati said that the government’s main goal is “to strike a balance between innovation in terms of digital payments […] against citizens’ safety, particularly given that cryptocurrency is very volatile.”

These concerns have been echoed by other African nations and reflected in their approach to the use of cryptocurrency: Nigeria banned banks from handling the currency in February 2021.

However, the Central African Republic swung the other way, becoming the first African state to make bitcoin legal tender and even launching its own cryptocurrency token, the Sango Coin. It also announced a regulatory framework for the country’s use of the digital currency.

Before Zambia can follow suit, work needs to be done to prepare the country’s digital infrastructure, including creating digital identities.

Once the regulatory tests are completed, Mutati hopes that the use of cryptocurrency in the country “will be a driver for financial inclusion and a change maker for Zambia’s economy.”

This announcement is part of a series of developments that signal an exciting economic future for the nation. The science and technology minister noted this, reflecting on the “increased appetite to invest in Zambia.”